Crypto traders did not start paying attention to traditional finance because they suddenly love banks. They started paying attention because TradFi moves capital, sets macro conditions, and increasingly shapes what happens in crypto.

TradFi, short for traditional finance, includes the financial system most people grew up with: banks, stock exchanges, brokers, funds, payment rails, and regulated markets like equities, FX, and commodities.

For a long time, crypto traders treated TradFi as background noise. That is no longer realistic. TradFi influences liquidity, volatility, risk appetite, and the rules of participation. In many market regimes, crypto does not lead the story – it reacts to it. As a result, understanding TradFi…