TechFlow news: On February 3, the latest analysis from QCP Capital indicated that the Trump administration's initial round of trade policies has triggered severe global market volatility. The Treasury yield curve has exhibited bearish flattening—rising two-year yields alongside falling ten-year yields—reflecting market concerns over short-term inflation and the long-term risks of trade wars on global economic growth.
The price spread between gold in New York and London has widened, reflecting not only the unwinding of popular EFP arbitrage trades but also suggesting potential logistical challenges in transferring gold between different vaults, highlighting market uncertainty over the possible further expansion of tariff scope.
The cryptocurrency market saw a sharp sell-off. As a risk indicator ahead of the U.S. market open, nearly $2 billion in liquidations occurred in the crypto market, with ETH declining more than BTC. The analysis suggests today’s risk-off sentiment is primarily driven by cross-asset portfolio rebalancing rather than isolated asset-specific events. Market volatility is expected to persist until negotiations between Trump and Mexico and Canada, as well as EU tariff policies, are finalized.
