On February 19th, QCP presented its latest market analysis, highlighting that **trade tensions** and ongoing **inflation concerns** are pivotal in shaping market dynamics. Currently, the only tangible outcome of these tensions has been a **10% tariff** imposed on specific **Chinese imports**. Should an agreement be reached regarding the anticipated **25% tariffs** on **Canada** and **Mexico**, it may circumvent potential fallout. Notably, the increase of tariffs on **steel** and **aluminum** from 10% to 25% is set to commence on **March 12th**. Nevertheless, these risks appear to be largely mitigated within **market pricing**. Despite prevailing uncertainties, **equity markets** continue their upward trajectory, supported by a stable **VIX futures** structure. This slow downward consolidation is favoring **volatility sellers**, while those holding long positions in volatility face diminishing returns. Meanwhile, crypto assets remain under pressure, with **Solana** affected by a significant release of **30 million tokens** on **March 1st**.
In addition, **FTX** hedging liquidity tied to **SOL** is exerting additional stress on both **Bitcoin** and **Ethereum**, compounding the existing market vulnerabilities. Interestingly, **Strategy** has opted not to increase its **Bitcoin** holdings last week, maintaining a steady volume of **478,740 BTC**. Plans are in motion, however, for a **$2 billion private placement** of **convertible senior notes** to enhance their Bitcoin investment. Despite these operational challenges, **Bitcoin** has demonstrated notable resilience, stabilizing around **$95,000**, following a dip to near **$93,000**. Nevertheless, the absence of immediate **catalysts** makes a breakthrough into new price territory difficult to envision.