QCP Interpreted Trump's Trade War: Activity Can Continue in Bitcoin and Altcoins! - Coin Bulletin

US President Donald Trump has taken one of the toughest trade actions since taking office.

The White House has decided to impose a 25% customs duty on goods coming from Canada and Mexico, and a 10% customs duty on products imported from China. Canada quickly responded by imposing a 25% tax on $106 billion worth of US products, and it is expected that Mexico will take a similar step.

According to QCP Capital's analysis, this wave of trade war has created a great uncertainty in the global markets. Short-term yields in US treasury bonds have increased, while long-term bonds have experienced a decline. This indicates that short-term inflation concerns have increased, while long-term global growth is under threat.

The markets reacted sharply to Trump's statements. Losses were experienced in the US and European stock markets, as well as in the gold and cryptocurrency markets. However, oil prices rose, which raised concerns about the impact of trade wars on energy markets.

Volatility may continue

The cryptocurrency market suffered a sharp blow with a daily liquidation of $2 billion. In particular, Ethereum faced a larger selling pressure compared to Bitcoin. QCP Capital notes that this selling wave is not just a crypto-specific collapse, but a result of global investors trying to rebalance their portfolios.

Trump's trade policies may not be limited to the US and North America alone. The President has clearly stated that he will also impose customs duties on the European Union.

QCP also expects the volatility to continue with the statements of "definitely will be" regarding tariffs on the EU while Trump prepares for negotiations with Canada and Mexico tonight.