The chill in the crypto market is growing stronger, and the prospects for a bull run remain uncertain.

The crypto market experienced a huge shock after the Lunar New Year. There were originally hopes that the new government would bring positive news to the industry, but the market faced an unexpected blow.

The global financial markets are turbulent due to the uncertainty of tariff policies. Although the subsequent delay in policy implementation has slightly eased market concerns, the crypto market still suffers a heavy blow. Bitcoin prices have plummeted significantly, and Ethereum has fallen to a nearly one-year low, with many tokens experiencing widespread declines. It is estimated that approximately $8-10 billion was liquidated that day, resulting in massive liquidations.

This event seems to have become a turning point for the market. Although some positive news emerged afterwards and mainstream cryptocurrencies showed some recovery, market sentiment remains fragile, and price fluctuations have intensified. Previously strong sectors have also fallen into a slump.

Currently, the main focus of the crypto market is on two directions: monetary policy and encryption policy. There is unprecedented attention globally on U.S. inflation data. Recently, the Federal Reserve kept interest rates unchanged but removed the wording about inflation moving toward the target. Labor market data shows that employment conditions are healthy. However, consumer inflation expectations have risen, which has had a negative impact on market sentiment.

From a macro perspective, the new government's tariff policy may drive up inflation. In response to external uncertainties, the Federal Reserve may continue to maintain a cautious stance. Currently, the market generally expects the Federal Reserve to start cutting interest rates later this year.

Despite the challenging external environment, there have been some positive changes within the encryption industry. Regulatory bodies have softened their stance on cryptocurrencies, creating a more favorable environment for industry development. The discussion around Bitcoin's strategic reserves has also drawn market attention, with several states beginning related plans.

Institutional investors continue to buy crypto assets, showing confidence in the long-term prospects of the market. However, Bitcoin may experience fluctuations within a certain range in the short term, while Ethereum may face further downward pressure. The altcoin market does not look optimistic due to oversupply.

In the current situation, investors need to closely monitor the upcoming series of economic indicators. Prudent operations and risk control may be the wisest strategy at present.