The global trade situation has become tense again, as U.S. leaders announced a 30% tariff on products from Mexico and the European Union, triggering a new round of international trade conflicts. This decision has sparked a risk-averse sentiment in the market in the short term, leading investors to sell off high-risk assets. As an emerging high-risk investment category, the encryption currency market has been hit hardest, experiencing severe price fluctuations.

In the long run, the disruption of this trade order may have a negative impact on the global economic outlook, which in turn could lead to a contraction in market liquidity. This change in the macroeconomic environment is likely to continue to suppress the price performance of encryption assets from both the perspectives of risk appetite and capital supply.

Analysts point out that in times of increased uncertainty, investors typically opt for more conservative investment strategies, reducing their allocation to high-risk assets. At the same time, escalating trade conflicts may affect corporate profit expectations, thereby impacting the overall liquidity of the market. These factors could have a sustained negative effect on the encryption currency market.

However, there are also views that, during the turmoil in traditional financial markets, some investors may see encryption as a hedging tool, which could somewhat balance the selling pressure in the market. However, considering the high volatility characteristics of the encryption market, this hedging effect may not be significant.

Overall, the current trade conflict situation poses a severe challenge to the encryption currency market. Investors need to closely monitor the developments in the global economic situation, carefully assess risks, and make adjustments to asset allocation.