BlockBeats News, April 1st, QCP released today's market analysis, BTC, ETH, and the S&P 500 Index all recorded their worst quarterly performance in three years. Over $160 billion in cryptocurrency market value has been wiped out since last Friday, signaling a cautious start to the second quarter as the market continues to search for its bullish momentum. Friday's sharp pullback was driven by large quarterly expiry trades, with traders heavily selling at fixed rates, causing option funding to shift from neutral to negative. Amidst the decoupling of the cryptocurrency leverage, macro data took another hit: core inflation data came in higher than expected, confirming a stronger inflation in February, despite still subdued consumer spending. The market is now nervously turning to the next potential catalyst. Trump's "Liberation Day" is scheduled for April 2nd, where he promised to announce a series of extensive retaliatory tariffs.

With consumer confidence hitting a 12-year low, the stock market has been volatile due to weekly 4% to 5% declines. Widespread and aggressive policies could exacerbate recession concerns and lead to a spiral sell-off of risk assets. The volatility index presents a complex situation, with the VIX index staying at a high of 22, reflecting the ongoing unease in the stock market. In contrast, cryptocurrency volatility has not been affected by the sell-off, despite experiencing a similar decline and witnessing significant selling on Friday but still trending downwards.

April has historically been a seasonally strong month for cryptocurrency, and as the market digests a series of macro risks and awaits a clearer direction, the future may be determined by sideways consolidation. Key events this week include ISM data, the nonfarm payroll report, and Powell's speech.