Crypto Bulls Charge: Trump Tariffs, Meme Coin ETFs, Bitcoin Options Surge

QCP Capital, a Singapore-based cryptocurrency trading firm, has recently analyzed option market data and found a significant increase in call skewness, suggesting that the market may be gearing up for another leg up. This observation comes amidst a backdrop of geopolitical and economic developments that could impact the cryptocurrency market.

In a recent announcement, President Trump revealed plans to impose a "25% or higher" tariff on drugs and semiconductor chips, with the possibility of extending these tariffs to cars by April 2. While the specific timetable for these tariffs remains unclear, companies may avoid them by relocating their operations to the United States. This announcement has raised concerns about unfair treatment of U.S. car exports and could have implications for global trade dynamics.

In the cryptocurrency field, the attention on meme coins has surged since Trump took office. Multiple ETF applications related to meme coins have been submitted to the U.S. Securities and Exchange Commission (SEC), including an ETF application for XRP. Notably, the Brazilian regulatory agency has approved the world's first physically-backed XRP ETF, which could potentially catalyze further ETF approvals and position the United States as a global cryptocurrency hub by 2025.

In the options market, there has been a strong demand for high Delta Bitcoin call options from February to April. This trend could be driven by Trump's statements and speculation surrounding a potential strategic Bitcoin reserve, fueling short-term bullish sentiment. Additionally, the 25 Delta implied volatility has shifted to a call skew for all maturities, indicating that the market is preparing for the second phase of the bull market. As inflation concerns ease, the S&P 500 index has hit a new high, and the U.S. Dollar Index (DXY) has fallen to the 107 level, suggesting that the macro backdrop is increasingly supportive of risk assets.