Asia Colour

Inflation fears remain top of mind as tariff tensions escalate. So far, the only confirmed hit—a 10% tariff on select Chinese goods—is in effect. The proposed 25% tariffs on Canada and Mexico could be avoided if a consensus is reached, while the planned steel and aluminum tariff hike from 10% to 25% is set to take effect on March 12. Markets, however, have largely priced in these risks. Despite ongoing uncertainty, equities continue to climb, while VIX term structure remains flat. The current pain trade? A slow grind in sideways markets, keeping volatility sellers in control while long-vol positions struggle to generate returns.

Crypto remains under pressure, with Solana bracing for impact ahead of a 30M token unlock on March 1. Hedging flows tied to FTX-related SOL are weighing on BTC and ETH, contributing to broader weakness. Meanwhile, Argentina’s latest meme coin frenzy, $LIBRA, saw a staggering $4 billion surge following the president’s endorsement before crashing 89%, leaving thousands of investors with significant losses.

Additionally, Strategy (NASDAQ: MSTR) did not purchase any Bitcoin last week, marking the second time that its holdings remained unchanged at 478,740 BTC. However, the company plans to strengthen its Bitcoin position through a private offering of $2 billion in convertible senior notes. Despite these headwinds, Bitcoin remains resilient around the $95k level after dipping towards $93k, but struggling to break higher amid a lack of catalysts in the short term.