Market volatility kicked in as policy shifts sparked investor jitters. Equity markets took a hit, with equities sliding following trade policy uncertainty, while precious metals like gold surged as investors rushed toward traditionally safe assets.

This kind of macro shock typically impacts the broader financial ecosystem—including crypto markets. When traditional markets get spooked by policy announcements, capital often flows into defensive plays: gold rallies, bonds shift, and traders recalibrate their portfolio positioning.

For crypto investors watching from the sidelines, it's a classic textbook moment. Risk-off sentiment tends to hit risk assets harder initially, but the correlation dynamics can shift depending on how markets price in longer-term implications. Some see these downturns as opportunities to accumulate, while others tighten stops.

The real question: will this be a temporary shake-out, or the start of a deeper reallocation cycle? Either way, keep an eye on how traditional macro plays unfold—they often set the tone for where capital flows next.