On December 26th, U.S. President Trump issued a statement stating that the U.S. military, under his direct orders, carried out multiple precision strikes against extremist targets in northwestern Nigeria on the evening of December 25th local time, using the term "powerful and deadly." Trump pointed out that the region has long suffered from violent threats from extremist militants, with significant civilian casualties. This operation was directly executed by the U.S. military.

After this news was announced, many traders began to reflect: Is there a certain correlation between the rising geopolitical tensions and the recent weakness in the crypto markets?

From a macro perspective, geopolitical conflicts often trigger several chain reactions. First, risk aversion tends to increase, with traditional funds possibly flowing into government bonds or gold and other safe-haven assets. Second, military actions may cause fluctuations in international financial markets, which can spill over into risk assets, including cryptocurrencies. Furthermore, if the conflict escalates, it could disrupt global trade order, indirectly affecting risk appetite.

However, it should be noted that the movement of the crypto market is influenced by multiple factors—such as Federal Reserve policy expectations, liquidity conditions, and institutional positioning—that are often more direct drivers. While a single geopolitical event can cause short-term volatility, the medium- to long-term trend still depends on macroeconomic fundamentals. The current performance of BTC and ETH may more reflect the overall adjustment cycle of risk assets rather than the direct consequences of a specific event.

It is worth continuously monitoring how such events evolve and their actual impact on global liquidity.