The escalating geopolitical tensions between major powers are reshaping asset flows. Risk-off sentiment typically flows away from volatile markets, and crypto is rarely the safe haven during such episodes. When global uncertainty spikes, capital gravitates toward traditional safe havens—Treasuries, gold, stable currencies. The crypto space tends to absorb selling pressure pretty swiftly under these conditions.

Short-term headwinds look likely. Investors recalibrating their risk exposure usually hit digital assets first. It's a familiar pattern: macro uncertainty → flight to safety → temporary crypto weakness. That said, these dislocations often create tactical opportunities for those with conviction in the asset class.