Matrixport Research: Make Good Use of Options to Offset Cryptocurrency Volatility Caused by Trump’s Policies
BTC has strong support at $73,000, and the likelihood of a significant parabolic breakout in the short term is low.Despite Treasury Secretary Bessent's repeated claims that the Trump administration is indifferent to stock market performance, pointing out that Trump's core voters—the bottom 50% of Americans—do not hold stocks, he has become increasingly worried as the situation worsens. On Sunday, amid escalating concerns, Bessent urgently flew to Florida to meet with Trump, trying to persuade him to address the turmoil in the stock market.
Fed Pauses Rate Cuts, Dollar and Treasury's "Safe-Haven" Attributes Decline
The U.S. stock market has plummeted by about 20%, while the market is exhibiting "abnormal" behavior: not only is the dollar weakening as a conventional safe-haven asset, but the bond market, which typically provides protection against stock declines, is also experiencing sell-offs.
The market is deeply concerned about inflation pressures triggered by tariffs. Powell recently stated that the Fed may temporarily pause rate cuts, emphasizing the need to fully understand the broader economic impacts of these tariffs—impacts that remain uncertain. In the crypto space, BTC's actual volatility has begun to decline, making selling put and call options more attractive.
U.S. Stocks Decline, Market Value Severely Eroded, Trump Pauses Rate Hikes for Some Countries
Despite no substantial discussions with any other countries (and Japan, South Korea, the UK, and Vietnam may soon issue counter-sanction messages), Trump announced a 90-day pause on tariffs for countries that have not retaliated.
The ongoing tariff tensions are escalating economic risks, as American consumers face rising living costs, increased investment risks, and more potential economic uncertainties, which will gradually reshape the new consumption system. The tariff pause reflects concerns from Trump and Bessent about the secondary effects of the stock market decline (with a market value evaporating by nearly $15 trillion) and the potential consequences of the continued sell-off in U.S. bonds.
BTC Currently Has Strong Support, Reasonable Operations in Put and Call Options Can Explore Profit Opportunities
BTC has strong support at $73,000. During the recent turbulent week, BTC's actual low of $74,437 also confirmed this. Although the risk/reward ratio at these levels has slightly improved, the likelihood of a significant parabolic breakout is low. BTC may remain within a broader trading range, making strategies like selling put and call options particularly attractive.
Currently, $90,000 is the key resistance level for BTC's upward movement, very close to the critical 21-week moving average. The 21-week moving average typically determines whether BTC is in a bullish or bearish zone. Meanwhile, during the current period of uncertainty and volatility, it is favorable for option sellers.
Disclaimer: The market carries risks, and investment should be approached with caution. This article does not constitute investment advice. Trading digital assets can involve significant risks and volatility. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions made based on the information provided herein.
