UK faces mounting economic headwinds as trade tensions escalate. New tariff policies threaten to add £22 billion in costs to the British economy, raising fresh recession concerns among analysts. The impact on sterling and traditional markets typically ripples into crypto markets—when traditional economies weaken, investors often reassess asset allocation strategies. This economic uncertainty tends to shift capital flows, making it a critical watch for traders monitoring macroeconomic trends. The interconnection between global trade dynamics and digital asset volatility has become increasingly pronounced in recent market cycles.