QCP Capital: Trump's Canada-Mexico negotiations are imminent, and EU tariff threats may continue to increase market volatility

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The crypto market has experienced a severe sell-off due to the impact of Trump's tariffs and the change in global risk sentiment. Before the US stock market opened, cryptocurrencies, which are typically used as a "risk sentiment indicator", saw around $2 billion in liquidations, with ETH seeing a more significant decline than BTC. This decoupling further indicates that the current decline in risk assets is more a result of portfolio rebalancing across asset classes, rather than being driven by a single asset. As Trump prepares to negotiate with Canada and Mexico, and declares that he will "certainly" impose tariffs on the EU, market volatility is expected to continue increasing.

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