Recent adjustments in trade policies have indeed exceeded expectations. Taking the European Union as an example, its exports to the US amount to $537.9 billion, which is twice the volume of trade with China, covering luxury goods, auto parts, and other products that directly impact American consumers. Once tariffs are increased, the effect on prices will be very direct, and US inflation expectations could rise rapidly.

More importantly, there are differences in the room for both sides to respond. In comparison, Europe has a more diverse set of countermeasures, and may even touch on geopolitical dimensions. Such a situation has gone beyond traditional trade frictions, and market risk appetite will naturally contract.

Meanwhile, the regulatory environment for stablecoins is also shifting. The CLARITY Act was initially expected to bring clear rules to the industry, but it ultimately was paused. This reversal directly impacts the commercialization prospects of USDC in the US market, compressing the yield space for stablecoins.

The problem is that when the original positive expectations suddenly turn into uncertainty, the market’s pricing system will face revaluation. Valuation premiums accelerate their release, leveraged positions encounter liquidations, and this logic can explain the recent drop of Bitcoin $BTC below 90,000. The combination of these two adverse factors naturally exerts significant pressure on adjustments.