Global capital flows are shifting as geopolitical dynamics reshape fiscal priorities. For decades, Europe relied on the US to fund roughly 80% of NATO defense spending, freeing up resources for domestic welfare programs. But as American defense commitments tighten, that calculus changes.

This isn't just political theater—it ripples through markets. When major economies restructure spending, capital allocation patterns shift. European governments now face hard choices: increase defense budgets or compress social spending. Meanwhile, the US reassesses its role as the world's reserve currency provider.

For crypto markets, this matters. Geopolitical uncertainty typically drives institutional capital toward alternative assets. When traditional alliances and financial arrangements get redefined, investors seek diversification beyond conventional government bonds and fiat systems. Digital assets often benefit from such rebalancing cycles.

The real question: How will this new economic order reshape global liquidity flows?