News

BlockBeats news, on April 7th, QCP Capital stated in its official channel that "The global trade war is intensifying and the market is unstable. Despite the heavy pressure on the US stock market last week, Bitcoin basically weathered this storm over the weekend. However, this resilience proved to be short-lived. In the early Asian trading session, cryptocurrencies plummeted with Bitcoin quickly falling from $80,000 to $74,500 after breaking through.   As markets continue to enter a correction range, implied volatility for both Bitcoin and Ethereum soared on Friday as markets were eager to cover their downside risks. The VIX index surged above 60 indicating extreme fear and anxiety in risk asset markets. With only two days left until higher tariffs are implemented on April 9th, the global economy hangs at the edge of a full-scale economic war.   However, as countries around the world scramble for a seat at negotiation tables tension may still remain high in markets. Trump shows no signs of backing down stating he doesn't want stocks to fall but "sometimes you have to take your medicine." As confidence and credibility in America's economy teeter if substantial progress isn't made by Wednesday then upcoming days could prove an unbearable bitter pill for both global markets and Trump himself."   Note from BlockBeats: A correction range refers to when market prices drop by 10% or more from recent highs.

Odaily Planet Daily reports that the Morgan Stanley strategy team led by Mike Wilson believes that unless the White House abandons its tariff plan, or the Federal Reserve releases easing signals, investors should prepare for a further 7%-8% drop in the S&P 500 index. They stated in their report to clients earlier on Monday that the next support level of this index - i.e., where buyers would enter - is currently at 4700 points. They added that at this level, valuations provide better support and this point is close to the 200-week moving average line, which is a long-term indicator of technical trends. Last Thursday, Morgan Stanley had set 5100 points as a key point but updated its support position on Monday partly because stock futures showed no signs of selling off easing. The S&P 500 Index futures indicate more than a 3% drop and Dow Jones Industrial Average futures plummeted over 1200 points. The Trump administration did not show any signs of backing down in comments last Sunday while Federal Reserve Chairman Powell said last Friday that due to unclear economic impacts from tariffs, they will adopt a wait-and-see attitude.