Recently, a series of statements in the global political arena have once again stirred the market into chaos. A major country's policymakers have repeatedly emphasized the record highs of their domestic market while reaffirming the necessity of tariffs—claiming to impose additional tariffs on China and other trading partners to protect domestic employment and promote manufacturing backflow.

This seems to be a trade policy issue, but don’t think it stops there. Crypto market investors need to be cautious because such macro policy changes often serve as triggers for market sentiment shifts.

**Triple Impact of Policy Signals**

Tariff policies are not just about trade. Their true power lies in triggering a chain reaction: rising costs of imported goods, increased inflation expectations; escalating trade frictions between countries, leading to tense market sentiment; and most critically, the Federal Reserve may be forced to adjust monetary policy in response.

In other words, an environment of loose liquidity could face pressure. The crypto market, especially high-risk, highly volatile tokens, is particularly sensitive to changes in liquidity and risk appetite.

**Why Do Crypto Assets Follow This Policy Dance?**

Simply put, there are three key dimensions to watch: First, once inflation expectations rise, demand for hedging assets increases, and digital assets like Bitcoin, viewed as inflation hedges, may benefit; second, when trade tensions escalate, risk aversion intensifies, sparking competition among traditional safe-haven assets and emerging safe-haven tools; third, if monetary policy tightens or uncertainty increases, selling pressure on risk assets (including altcoins and new concept tokens) usually intensifies.

So instead of waiting for the market to come to you, it’s better to start observing these macro signals now—tariff expectations, inflation data, and the trend of the US dollar index—all of which could preemptively indicate how risk appetite in the crypto market is shifting.