QCP: US stocks and the crypto market are experiencing a short-term rebound, but the escalating US-China trade situation may become a "bull trap."

Mars Financial News, QCP Capital pointed out in the latest market briefing that the U.S. stock and crypto markets rebounded sharply after Trump announced the “suspension of tariffs and the imposition of 10% reciprocal tariffs on all except China”, with the Nasdaq up 12.02%, the S&P 500 up 9.51%, BTC up 8.43%, ETH up 13.38%, and triggered a $75 million short liquidation in the crypto market within 1 hour. However, the QCP warns that this “Make America Wealthy Again” policy shift is more like a phased easing, and the “China exceptional” policy has escalated the Sino-US trade war again, posing continuous pressure on Chinese assets. The renminbi has fallen to an 18-year low, and the market is waiting to see if Beijing will fight back strongly, and if China’s retaliation escalates, the current rally could turn into a “bull trap”. In addition, QCP noted that despite the warmer short-term sentiment, the market remains cautious about the upside volatility in May and June, with sellers continuing to take advantage of the rally to reduce their positions. At the same time, some investors are betting on BTC to return to $100,000 by the end of the year, and options buying was active in December. Tonight’s US CPI data will be the next focus for the market, and a weaker-than-expected reading could ease tariff-induced inflation concerns.