When geopolitical tensions escalate, traditional finance markets often bear the brunt first. Risk regulators are now flagging potential vulnerabilities in euro area banks' foreign exchange funding channels—a critical concern given how interconnected global markets have become. As external pressures mount, these institutions face tighter liquidity conditions and rising hedging costs. The ripple effects extend beyond traditional banking: crypto traders and asset allocators watch these signals closely, since forex market stress often precedes broader financial market volatility. When traditional banking systems show strain, alternative assets like Bitcoin and decentralized finance protocols can experience sudden capital flows as investors seek diversification. Understanding these geopolitical fault lines helps explain why crypto markets sometimes move independently of traditional indices—they're pricing in systemic risks that traditional markets haven't fully digested yet.