Prices for everyday household items rose less than expected last month despite worries that the detrimental effects of Trump’s Bitcoin up 2% over the last 24 hours, reaching $82,000 after falling below $79,000 on Monday. XRP up 6%, Dogecoin is up 4%, and Cardano is up 2% over the past 24 hours.

But crypto investors shouldn't get too comfortable with those gains, according to David Siemer, CEO of crypto asset management firm Wave Digital Assets, who warned the tailwinds will be short-lived. “External factors such as trade tensions and new tariffs could reintroduce inflationary pressures, keeping volatility high in both traditional and digital asset markets,” he tells Fortune.

The entire crypto market is down significantly from December highs, dumping nearly 30% of its market cap since the Federal Reserve signaled it would make fewer interest rate cuts in 2025 than the previous year. That means less economic liquidity, causing investors to tighten their belts and shift away from risky assets.

Trump’s on-again, off-again tariff standoff with major U.S. trading partners hasn’t helped matters. The president recently imposed—and then partially rolled back—aggressive tariffs on Chinese, Canadian, and Mexican imports. That is expected to increase the price of foreign goods via retaliatory tariffs, raising the price of everyday items for many Americans. Trump further worried investors over the weekend in a Fox News interview by declining to rule out the possibility of a recession this year as the country goes through a “period of transition.”

The President’s long-anticipated crypto policy changes last week also landed with a thud. Trump announced a national crypto reserve that would be made up of Bitcoin and other cryptocurrencies. But rather than make new purchases, the government will use its existing crypto stories—acquired via government seizures—to fill its coffers.