As the Trump administration settles into its second year, the global financial landscape is shifting in unpredictable ways. One trend becoming increasingly clear: interest-rate divergence across major economies.

Different central banks are taking divergent paths on monetary policy—some tightening, others maintaining or easing. This fragmentation creates both opportunities and risks for investors navigating crypto and traditional markets alike.

The fog of policy uncertainty makes it harder to predict capital flows. When rates move in opposite directions across regions, it often triggers capital reallocation searches for better yields. Crypto markets, being globally connected and 24/7, tend to react sharply to these macro shifts.

For traders and holders, this divergence warrants close attention. Rate differentials historically influence exchange rates, commodities, and yes—digital assets too. The next moves from major central banks could reshape market dynamics in ways we're only beginning to see.