Markets took a hard hit on Tuesday, extending early losses even deeper as fresh trade tensions emerged. President Trump's latest tariff threats targeting multiple European nations—part of a broader geopolitical play—sent shockwaves across equity markets. Stock indices tumbled significantly in response.

This kind of macro volatility matters beyond traditional equities. When major policy shifts trigger broad market selloffs, correlations between asset classes tend to shift fast. Risk-off sentiment in equities often ripples into crypto positioning too. Investors suddenly reassessing their broader portfolio allocation can spark sudden capital moves—whether it's profit-taking or repositioning for uncertainty. Keep eyes on how policy rhetoric translates into actual tariff implementation; market reaction tends to be most severe when uncertainty peaks.