QCP Capital: The global trade war is escalating, and the risk asset market is in extreme panic

PANews reported on April 7th that Singaporean cryptocurrency investment firm QCP Capital stated that as the global trade war intensifies, markets are becoming increasingly volatile. Despite heavy pressure on the US stock market last week, Bitcoin was largely unaffected over the weekend. However, this resilience did not last long. In early Asian trading hours, cryptocurrencies plummeted with Bitcoin falling below $80,000 and sharply dropping to a low of $74,500. In just the past 24 hours alone, more than $800 million in Bitcoin and Ethereum have been liquidated. As markets continue to fall into correction territory, implied volatility for Bitcoin and Ethereum surged to over 85% and 130% respectively on Friday as investors sought hedges against downside risks. The Volatility Index (VIX) soared above 60 indicating extreme fear in risk asset markets.

With only two days left until tariff measures are implemented on April 9th, the global economy is teetering on the edge of a full-scale economic war. Notably Trump's "all-out" approach seems to be eliciting responses from all sides with reports stating that over fifty countries have actively sought trade negotiations. However as nations scramble for negotiation seats market anxiety may persist . President Trump who shows no signs of backing down said he "doesn't want stocks to go down but sometimes you have to take medicine". If substantial progress isn't made by Wednesday it could prove a bitter pill for confidence in America's economy , its credibility , global markets and even Trump himself.