Key Points
- There is a 70% probability that the trade conflict between Canada and the U.S. will resolve by May, according to Polymarket predictions and comments made by Commerce Secretary Howard Lutnick.
- Encouraged by hints of possible agreements from Lutnick, market sentiments steadied, with Bitcoin trading above $87,000.
Details: On Tuesday, Canada and Mexico encountered the implementation of 25% tariffs on all goods entering the U.S., with Trump referencing their inability to address fentanyl trafficking and illegal immigration as a national security concern.
However, later, Lutnick indicated a potential pathway for discussions, with odds increasing 20% on Polymarket within hours.
Lutnick stated on Fox Business: “I think [Trump is] going to work something out with them. It’s not going to be a pause, none of that pause stuff, but I think he’s going to figure out: you do more, and I’ll meet you in the middle some way and we’re going to probably announce that tomorrow.”
Lutnick’s remarks seemed to uplift crypto markets on ‘Turnaround Tuesday,’ with Bitcoin increasing by 1.5% and remaining comfortably above $87,000, according to CoinDesk Indices data.
The CoinDesk 20 (CD20), reflecting the performance of the world’s major digital assets, rose by 2% following this news.
