Escalating trade frictions would fundamentally shift market sentiment. When tariff barriers rise and bilateral tensions intensify, capital flows become unpredictable—risk assets face headwinds while safe havens draw inflows. Crypto markets, being globally-connected and sensitive to macroeconomic shifts, would feel the tremors. Whether it's equity volatility spilling over or broader portfolio rebalancing, an aggressive trade war scenario warrants close monitoring. The interconnected nature of modern markets means even regional trade disputes ripple across digital asset valuations.