When major economies tighten fiscal policy, it ripples across the market. Europe's latest example: Dutch budget reforms are set to make borrowing more expensive continent-wide. Here's what matters—higher interest rates don't just affect traditional bonds. They reshape capital allocation decisions across all asset classes, including crypto. When governments pull back spending and central banks respond with tighter conditions, investors recalibrate their risk portfolios. That means less liquidity chasing speculative assets and more capital flowing toward fixed-income opportunities. For traders and holders watching macro cycles, this is a signal worth noting. European fiscal tightening historically coincides with periods where crypto experiences either consolidation or rotation from high-risk to value-oriented positions. The borrowing cost increases are already baked into market expectations, but sustained pressure on European rates could amplify volatility in coming months.