The crypto market is currently navigating a delicate balance: intensifying trade tensions are weighing on sentiment, while growing speculation around interest rate cuts could offer support in the medium term. If expectations solidify that the #Fed will ease monetary policy due to global trade risks, this could provide a liquidity boost—typically positive for risk assets like crypto.

Short-Term Scenarios:

• Bearish: Further escalation in the trade war, such as new US tariffs starting April 9, could stoke recession fears and spark broader sell-offs. A lack of monetary policy response could raise stagflation concerns—bad news for crypto markets.

• Bullish: Signs of de-escalation—like delayed tariffs or renewed negotiations—could trigger quick rebounds. Market-friendly signals from the Fed or renewed crypto-positive rhetoric from Trump could further fuel upward momentum.

Conclusion: The crypto market remains highly sensitive to macro headlines. With volatility elevated, investors should brace for sharp moves driven by political and monetary policy developments in the days ahead.