Risk sentiment is warming up across Asia today. Stock markets from Tokyo to Singapore are posting solid gains, riding the wave of yesterday's U.S. market strength. The catalyst? A significant policy shift—tensions around territorial expansion plans have eased considerably, removing a layer of geopolitical uncertainty that's been weighing on investor confidence.

When fear recedes, risk appetite rebounds. This pattern matters for the broader crypto ecosystem. Macro risk-off events typically trigger capital rotation away from speculative assets, including digital currencies. Conversely, as global risk sentiment improves and safe-haven flows reverse, alternative assets tend to benefit from improved risk appetite.

The unwinding of geopolitical concerns signals traders are more comfortable taking on risk again. In this environment, you're likely to see renewed interest in growth-oriented and volatile asset classes. Whether this momentum sustains depends on whether further policy clashes emerge or if this represents a more durable shift in the geopolitical landscape.