Tariff policies are becoming a key market sentiment driver. As policy uncertainty intensifies, Bitcoin's recent pullback reflects broader risk-off positioning across asset classes. When governments signal aggressive trade measures, markets typically shift into defensive mode—traditional investors pare exposure while crypto traders reassess their conviction levels. The gridlock in policy implementation adds another layer of uncertainty; no one quite knows which proposals will actually stick. This creates a perfect storm for volatility: asset prices get pressured when forward guidance turns muddled. Bitcoin's downside action isn't just about crypto speculation—it's a window into how macro headwinds are reshaping risk appetite globally. When policy becomes this unpredictable, defensive trades tend to dominate.