U.S. trade deficit has compressed dramatically to $29.4 billion, down from $136 billion—marking the lowest level in nearly two decades. This sharp contraction reflects shifting trade policies and their downstream effects on economic sentiment. Market watchers are noting the implications: tighter fiscal conditions often reshape capital allocation flows, which ripple across asset classes including crypto markets. Whether this trend sustains or reverses will be closely monitored by traders positioning for macroeconomic shifts ahead.