Cryptocurrencies are seen as a long-term hedge against inflation and uncertainty, but in the short term, they behave more like a risk asset that may react negatively to any uncertainties surrounding trade wars. Additionally, the weak development of Ethereum, the retreat of meme bubbles, and the lack of fresh hotspots in the industry have also adversely affected the crypto market.

Although interest rate cuts have become highly likely, the resilience of the economy and the moderate rise in inflation may limit the extent of the cuts, especially when the economic fundamentals remain stable.