The recent one-day market movement can be described as a roller coaster, first causing people's hearts to race in fear, then suddenly doing a 180-degree turn.

Here's what happened. Earlier, news about tariffs being imposed on multiple European countries was released, and the market immediately exploded. Sweden's largest pension fund, Alecta, simply liquidated nearly $8 billion in U.S. Treasuries, causing U.S. stocks and the cryptocurrency market to fall sharply. It really looked like things were going to get tough.

And then? Just two days later, a 180-degree reversal. Official statements announced that a "framework agreement" had been reached with allied countries, and the tariff decision originally scheduled to take effect on February 1 was canceled. The market rebounded— the S&P 500 surged over 1%, and gold and U.S. Treasury yields also retreated.

Interestingly, Bitcoin didn't quite follow suit. While traditional stocks rebounded, Bitcoin remained oscillating between $88,000 and $90,000, indicating that market sentiment still seems somewhat fragile.

Wall Street's smart money has long seen through this pattern, giving it a name: the "TACO trade." The logic is simple: buy the dip when tariffs threaten, then sell when the other side retreats. This European incident is a textbook example of this play.

But beneath the surface, things are not so simple. European countries have long been dissatisfied with this unpredictable attitude. Some even say the agreement was negotiated bypassing certain countries, which has further eroded trust among allies.

The market is playing a game, while geopolitical tensions are gradually building up. When the next wolf really comes, will anyone still believe? That’s the core issue.