QCP Asia Colour – 13 May 2025 A dull weekend? Not this time. In a breakthrough moment for global trade, the U.S. and China have agreed to temporarily roll back tariffs. U.S. duties on most Chinese imports will plunge from 145% to 30%, while China will cut levies on U.S. goods from 125% to 10%. The détente sparked a sharp risk rally, with U.S. equities gapping 3% higher at the open as markets priced in a resurgence of cross-border flows. Gold, a traditional hedge against uncertainty and protectionism, tumbled nearly 3% on the news before paring losses. The return to a more orthodox macro regime - USD stronger, Treasury yields firmer, gold weaker - has encouraged renewed vol selling across asset classes. The VIX is now back down to 18, and BTC front-end vols have compressed by over 5 vols. BTC and ETH initially dipped on the tariff announcement and are now stabilizing around $103K and $2.4K respectively. But under the surface, signs of rotation are emerging. BTC dominance has slipped below 63%, while alts, particularly…