TechFlow, April 7 — QCP Capital stated in an official channel that "global trade tensions have intensified, sending shockwaves through markets. Although U.S. equities faced significant pressure last week, Bitcoin remained relatively stable over the weekend. However, this resilience did not last long. The crypto market plunged sharply during early Asian trading hours, with Bitcoin dropping below the $80,000 level and hitting a low of $74,500. Over the past 24 hours, more than $800 million in liquidations occurred across Bitcoin and Ethereum.
As the market remains in a consolidation phase, traders are rushing to hedge against downside risks, pushing Friday's implied volatility for Bitcoin and Ethereum above 85 and 130 respectively. The VIX 'fear index' has surged past 60, signaling extreme panic in risk assets. Chinese equities were also hit hard, suffering their worst single-day drop since 2008—likely a delayed reaction to China’s announcement on Friday imposing a 34% tariff on all U.S. goods.
With only two days left before the new tariffs take effect on April 9, the global economy is teetering on the brink of full-scale economic warfare. Notably, Trump’s 'full-throttle' strategy appears to be working, with reports indicating that over 50 countries have proactively sought trade negotiations.
Yet amid a global rush to negotiate, market sentiment is expected to remain tense. The President has adopted a firm stance, stating he 'doesn’t want the stock market to fall, but sometimes bitter medicine must be taken.' If no substantial progress is made by Wednesday, that bitter medicine could prove too harsh—not just for global markets but for Trump himself—with both confidence in and credibility of the U.S. economy hanging in the balance."
