Bullish momentum hit Wall Street as the S&P 500 logged its strongest single-day performance in two months. The rally came after a significant policy shift—tariff threats against European allies were rolled back, easing concerns that had weighed on investor sentiment.

This kind of risk-on environment typically ripples across asset classes. When traditional markets breathe easier over macro headwinds, crypto markets often follow suit. Lower geopolitical tension and reduced trade war anxiety tend to support broader appetite for risk assets, including digital currencies.

The broader takeaway: policy clarity and de-escalation tend to create tailwinds for market recovery. Whether this momentum persists depends on whether we see sustained policy smoothing or fresh uncertainties emerge.