In 2026, the financial markets kicked off with a grand spectacle. The spark was simple: a certain country's leader wanted to purchase an island but was refused, then turned around and wielded tariffs against multiple European countries. What seemed like a sudden political event actually directly hit the global supply chain.

European automakers were hit first. The stocks of BMW, Mercedes-Benz, and Volkswagen dropped 5%-7% at market open. These aren't just fluctuations; behind them are real financial losses. Volkswagen Group alone lost 1.3 billion euros in tariffs in the first half of the year, with overall net profit plummeting. Mercedes-Benz faced even tougher times, with its net profit halving from a high level to around 2.7 billion euros in the first half of the year. Tariffs jumped from previous levels to 25%, which already threatens the survival of European manufacturers deeply dependent on the US market.

Here's an interesting comparison.

While traditional industries are ravaged by the tariff storm, another corner of the crypto market is experiencing hot money flows. Geopolitical tensions and regulatory pressures seem to encourage conservatism, but instead, they have increased demand for privacy solutions. The total market cap of privacy coins has surpassed $23 billion, and capital flows are shifting. Many institutional investors are starting to switch from mainstream large coins to medium-sized privacy projects, such as those that achieve privacy features within a compliant framework. Take Horizen, for example. Due to its design that balances privacy and compliance, it has seen significant gains over the past month, attracting considerable institutional attention.

What does this reflect? An extreme divergence in market narratives.

In the traditional financial world, geopolitical conflicts directly impact the real economy, and the financial reports of auto giants are the wounds. But in the crypto space, macro uncertainties have become catalysts—people's demand for financial privacy is rising, and capital is seeking new breakthroughs. The old order is experiencing friction, and new demands are emerging. Can you feel it? Capital is voting with its feet, reorienting itself to seize opportunities in this era.