As the Markets Brace for US Inflation Data, the VIX Index Rises! What Does It Mean? Here are the Details

With the new 25% customs duties imposed by the USA on steel and aluminum imports coming into effect today, global trade tensions are increasing while market sensitivity remains fragile.

As the US and EU Escalate Trade War, Market Tension Rises

In response, the European Union announced retaliatory measures and plans to impose customs duties on 26 billion Euros and 022 billion Dollars worth of US goods starting from next month.

The VIX index, an important measure of market volatility, rose to 28 before settling at 26.6. Meanwhile, the Cboe VIX futures curve reversed, signaling that markets may be approaching a bottom.

Investors are also closely watching the upcoming Consumer Price Index (CPI) report, which could significantly impact Federal Reserve interest rate expectations.

Currently, the markets are predicting that the FED will cut interest rates four times this year, which is the complete opposite of the prediction of a single interest rate cut in January.

Crypto Market Faces SEC Delays and ETF Launches

In the cryptocurrency sector, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on the spot XRP, SOL, LTC, ADA, and DOGE ETF applications until May (.

In addition, the SEC indicated that regulatory review will continue by planning a high-risk crypto regulation roundtable meeting for March 21.

By the way, Bitcoin ETFs saw a net outflow of $153.87 million, partly directed by Grayscale Bitcoin Trust )GBTC(, which sold 641 BTC. The data indicates that investors remained cautious amid macroeconomic uncertainties.