Recently, the global financial markets have been stirred up by a piece of news. Trump announced a 10% tariff on Europe, which will be raised to 25% in June. This directly hit European stock markets hard, and gold and silver soared to record highs.

The logic behind this wave of market movement is quite clear—rising geopolitical risks cause global capital to instinctively seek safe-haven assets. Gold rising indicates that traditional safe-haven positions are already fully loaded. So the question is: will digital gold Bitcoin also be pushed onto the wave next?

**Market Chain Reaction**

The most direct consequence of spreading risk aversion is capital rotation. When the stock market is under pressure and policy uncertainty increases, institutions and individuals will look for alternative assets. In recent years, Bitcoin has indeed established itself in this role, especially since the probability of the Fed maintaining loose monetary policy in the short term is high (market generally believes the chance of rate hikes is below 5%), creating a liquidity-rich environment. In other words, money in the crypto space won't be suddenly frozen by tightening policies; instead, it may be driven into high-risk, high-reward sectors.

But don’t get too excited. When global panic spreads to the crypto space, the most immediate manifestation is a sharp increase in volatility. Short-term, we may see violent price swings, and the risk of liquidation in the futures market will multiply. At such times, players without stop-loss awareness can easily be pierced by market spikes.

**Response Strategies at Different Timeframes**

If you are a short-term trader, the key now is to hold support levels. As long as the critical support isn’t broken, consider lightly testing long positions, but be sure to enter and exit quickly—don’t expect to profit from a single wave of market movement. Mainstream coins tend to be relatively more controllable in their volatility, while small-cap coins are more prone to sharp declines under such market sentiment, making chasing highs very risky.

Mid-term holders should change their mindset. This is a good time to partially liquidate and keep cash and stablecoins. Geopolitical risks always unfold gradually, and more uncertainties will be released later. Instead of going all-in now, it’s better to leave some ammunition, waiting for the market sentiment to fully digest before deploying at lower levels.

The most crucial point is mindset. Market news-driven emotions come quickly and go just as fast. Chasing highs is always a fast track to losing money. True opportunities often appear when everyone is very pessimistic. The essence of the crypto world is still a game of capital and emotion; external events just amplify these factors. Don’t let short-term noise disrupt your rhythm.

**Keep an Eye on the Rhythm**

Tonight’s movements in the US stock market and gold are basically the market’s compass. They will tell you whether risk aversion is strengthening or waning. Understanding these two indicators clearly is more effective than any technical analysis.