2026 begins, with the turbulence of global political situations intertwined with the ups and downs of the crypto world. The deadlock in Eastern European conflicts has escalated again—on one side, a stance of insisting on negotiations but refusing to make concessions; on the other, a clear attitude of continuing to fight. Coupled with various peace proposals from major powers, this multi-party game directly impacts global capital market expectations. Investors in the crypto space need to realize that behind the surface political news, there are deeper shifts in capital flows.

Looking back to early 2022, after Western financial sanctions were implemented, many people regarded Bitcoin as a "hedging tool." Large amounts of capital entered the market, but what was the result? — a brief rebound followed by long-term volatility, with retail investors chasing highs suffering heavy losses. This situation is even more noteworthy. The key lies in the scale of frozen assets and liquidity pressure. According to official disclosures, assets frozen in relevant regions exceed 200 billion euros, generating annual interest of 3 billion euros. These funds have been approved for defense and reconstruction purposes.

You might ask, what does this have to do with the crypto market? The logic is quite clear—when traditional financial channels are divided due to geopolitical conflicts, the cross-border transfer advantages of digital assets are re-priced. As the costs and risks of traditional channels increase, the scale of capital seeking alternatives will expand. This is precisely what market participants must be alert to. History repeatedly proves that geopolitical tensions often serve as an invisible force driving changes in the crypto market landscape.