BlockBeats News, April 4th, QCP Capital announced on its official channel that Trump declared a 10% tariff on all imported goods this Wednesday and imposed "reciprocal tariffs" on countries with a significant trade deficit with the United States. The market reacted swiftly. Bitcoin plummeted from an intraday high of $88,500 to $81,200, erasing previous gains and triggering a large-scale cryptocurrency market liquidation. Over $221 million of long positions were liquidated, with Bitcoin experiencing a more severe impact compared to Ethereum.

As expected, risk assets across the board experienced a sell-off. U.S. stock index futures led the decline, with S&P 500 futures falling by 3.38% and Nasdaq 100 futures plunging by 4.28%. The selling pressure continued into yesterday's U.S. stock trading session, with American Eagle Outfitters and other consumer stocks plummeting by 17.47%, reflecting investors' concerns about exposure to the Asian supply chain.

With the key macro risk event unfolding, market attention shifted to tonight's non-farm payroll report. Investors are on alert for signs of weakness in the U.S. labor market. If the data disappoints expectations, it will strengthen the case for further Fed rate cuts this year as policymakers attempt to cushion the economic slowdown. As of the time of writing, the market expects four rate cuts in 2025 (25 basis points each in June, July, September, and December).

In the options market, exchanges observed a sustained high short-term volatility, leading to a surge in downside protection demand. This discrepancy highlights the current market sentiment: uncertainty and a cautious outlook prevail. Nevertheless, with positions already light and risk assets broadly oversold, the stage may be set for a short-term bounceback.