PANews reported on April 7 that QCP Capital, a Singapore-based crypto investment firm, said that as the global trade war intensified, the market was in turmoil. Although the U.S. stock market was under heavy pressure last week, Bitcoin was largely unaffected over the weekend. However, this resilience did not last long. In the early Asian trading hours, cryptocurrencies plummeted, with Bitcoin falling below $80,000 and plummeting to a low of $74,500. In the past 24 hours alone, the liquidation amount of Bitcoin and Ethereum exceeded $800 million. As the market continued to fall into the correction zone, the implied volatility of Bitcoin and Ethereum soared to more than 85% and 130% respectively on Friday, and the market sought to hedge the downside risks. The fear index (VIX) soared to more than 60, indicating extreme panic in the risk asset market.
With just two days until the tariff hikes are set to take effect on April 9, the global economy is on the brink of an all-out economic war. It is worth noting that Trump's "all-out" effort seems to be triggering a response from all sides, with reports that more than 50 countries have taken the initiative to seek to start trade negotiations. However, as countries scramble for a seat at the table, market tensions are likely to continue. President Trump, who has no intention of backing down, said he "doesn't want the stock market to fall, but sometimes you have to take medicine to cure your illness." If no substantial progress is made by Wednesday, the test of confidence and credibility in the US economy may become a bitter pill for global markets and even Trump himself.
