European investors are sitting on a massive position: roughly $8 trillion in U.S. bonds and equities combined. That's serious leverage exposure when you consider what happens if capital flows shift.

Now add potential tariffs into the mix. Trade tensions aren't just about goods anymore—they ripple through currency markets, bond yields, and equity valuations. A full-scale trade war scenario could force portfolio rebalancing on a historic scale.

For crypto markets, this matters. When traditional markets get shaky, institutions either flee to safe havens or reposition entirely. Either way, global liquidity gets disrupted. The stakes aren't just political—they're structural for how capital moves worldwide.