According to The Kobeissi Letter, the last time US tariffs on China were this elevated, the S&P 500 index traded approximately 200 points lower, and market consensus expected four Federal Reserve rate cuts for 2025, with Wall Street analysts warning of a potential recession (source: @KobeissiLetter, May 12, 2025). This current shift in market sentiment, despite persistent tariff pressures, suggests increased risk appetite among investors, which has historically supported both equities and crypto assets. Crypto traders should note that if sentiment remains strong despite macro headwinds, digital asset prices could benefit from a broader risk-on environment, making this a key indicator for short-term trading strategies.