Uncertainty surrounding U.S. trade policy may keep market sentiment cautious.

The newly implemented U.S. tariff policies have already impacted the cryptocurrency market, leading to declines in both digital assets and traditional stock markets. However, long-term optimism has outweighed short-term concerns, as U.S. Commerce Secretary Howard Lutnick stated that an agreement to reduce tariffs with Canada and Mexico could be announced as early as Wednesday.

While trade policy uncertainty may keep investors wary, the increasing likelihood of a Federal Reserve rate cut could signal a potential reversal in the cryptocurrency market.