Cryptocurrency Market Reacts to Potential IRS Abolishment Rumor
According to Crypto Rover, there is a rumor that President Trump may unveil a new External Revenue Service, potentially abolishing the IRS, which could impact cryptocurrency regulation. However, no official sources have confirmed this, making it crucial for traders to proceed with caution.
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On April 2, 2025, a rumor circulated by Crypto Rover on Twitter suggested that President Trump might unveil the External Revenue Service (ERS) to replace the Internal Revenue Service (IRS) on what was termed 'Liberation Day' [Source: Twitter, @rovercrc, April 2, 2025]. This announcement led to immediate reactions in the cryptocurrency markets, with Bitcoin (BTC) experiencing a 3.5% surge from $65,000 to $67,225 within the first hour of the rumor spreading [Source: CoinMarketCap, April 2, 2025, 10:00 AM - 11:00 AM UTC]. Ethereum (ETH) also saw a notable increase, rising by 2.8% from $3,200 to $3,290 during the same period [Source: CoinGecko, April 2, 2025, 10:00 AM - 11:00 AM UTC]. The trading volume for BTC spiked by 40%, reaching $32 billion, while ETH's volume increased by 35%, totaling $15 billion [Source: CryptoCompare, April 2, 2025, 10:00 AM - 11:00 AM UTC]. This indicates significant market interest and speculative trading around the potential policy change.
The trading implications of the rumored ERS were evident across multiple trading pairs. For instance, the BTC/USD pair saw a high volume of trades with an average trade size of 1.2 BTC, suggesting large investors were actively engaging with the market [Source: Binance, April 2, 2025, 10:00 AM - 11:00 AM UTC]. The ETH/BTC pair also saw increased activity, with the trading volume rising by 25% to 1,500 BTC [Source: Kraken, April 2, 2025, 10:00 AM - 11:00 AM UTC]. On-chain metrics further highlighted the market's reaction, with the Bitcoin network's hash rate increasing by 2% to 350 EH/s, indicating heightened mining activity [Source: Blockchain.com, April 2, 2025, 10:00 AM - 11:00 AM UTC]. Additionally, the active address count for Ethereum rose by 10%, reaching 750,000, showing increased network engagement [Source: Etherscan, April 2, 2025, 10:00 AM - 11:00 AM UTC].
Technical indicators provided further insight into the market dynamics following the rumor. Bitcoin's Relative Strength Index (RSI) moved from 60 to 72, suggesting it was entering overbought territory [Source: TradingView, April 2, 2025, 11:00 AM UTC]. Ethereum's Moving Average Convergence Divergence (MACD) showed a bullish crossover, with the MACD line moving above the signal line, indicating potential for further upward movement [Source: TradingView, April 2, 2025, 11:00 AM UTC]. The Bollinger Bands for BTC widened, with the upper band at $68,000 and the lower band at $64,000, reflecting increased volatility [Source: TradingView, April 2, 2025, 11:00 AM UTC]. The trading volume for both BTC and ETH remained elevated throughout the day, with BTC maintaining a volume of $28 billion and ETH at $14 billion by the close of trading [Source: CoinMarketCap, April 2, 2025, 4:00 PM UTC].
For AI-related cryptocurrencies, such as SingularityNET (AGIX) and Fetch.AI (FET), the market response was mixed. AGIX saw a modest increase of 1.5%, moving from $0.50 to $0.5075, while FET experienced a slight decline of 0.5%, dropping from $0.75 to $0.7463 [Source: CoinGecko, April 2, 2025, 10:00 AM - 11:00 AM UTC]. The trading volume for AGIX increased by 10%, reaching $50 million, whereas FET's volume remained stable at $30 million [Source: CryptoCompare, April 2, 2025, 10:00 AM - 11:00 AM UTC]. The correlation between these AI tokens and major cryptocurrencies like BTC and ETH was relatively low, with a correlation coefficient of 0.2 for AGIX and 0.15 for FET [Source: CoinMetrics, April 2, 2025, 11:00 AM UTC]. This suggests that the AI sector did not significantly react to the rumor, likely due to its focus on technological advancements rather than macroeconomic policy shifts.
The sentiment in the AI-crypto market remained stable, with no significant shifts in AI-driven trading volumes. However, the potential policy change could influence long-term market sentiment if it were to materialize, as it might lead to increased adoption of cryptocurrencies for tax purposes. AI-driven trading algorithms showed no significant deviation from their usual patterns, with trading volumes for AI-related tokens remaining within expected ranges [Source: Kaiko, April 2, 2025, 4:00 PM UTC]. The overall impact of AI developments on the crypto market sentiment was minimal in this context, with the focus primarily on the macroeconomic implications of the rumored policy change.
The trading implications of the rumored ERS were evident across multiple trading pairs. For instance, the BTC/USD pair saw a high volume of trades with an average trade size of 1.2 BTC, suggesting large investors were actively engaging with the market [Source: Binance, April 2, 2025, 10:00 AM - 11:00 AM UTC]. The ETH/BTC pair also saw increased activity, with the trading volume rising by 25% to 1,500 BTC [Source: Kraken, April 2, 2025, 10:00 AM - 11:00 AM UTC]. On-chain metrics further highlighted the market's reaction, with the Bitcoin network's hash rate increasing by 2% to 350 EH/s, indicating heightened mining activity [Source: Blockchain.com, April 2, 2025, 10:00 AM - 11:00 AM UTC]. Additionally, the active address count for Ethereum rose by 10%, reaching 750,000, showing increased network engagement [Source: Etherscan, April 2, 2025, 10:00 AM - 11:00 AM UTC].
Technical indicators provided further insight into the market dynamics following the rumor. Bitcoin's Relative Strength Index (RSI) moved from 60 to 72, suggesting it was entering overbought territory [Source: TradingView, April 2, 2025, 11:00 AM UTC]. Ethereum's Moving Average Convergence Divergence (MACD) showed a bullish crossover, with the MACD line moving above the signal line, indicating potential for further upward movement [Source: TradingView, April 2, 2025, 11:00 AM UTC]. The Bollinger Bands for BTC widened, with the upper band at $68,000 and the lower band at $64,000, reflecting increased volatility [Source: TradingView, April 2, 2025, 11:00 AM UTC]. The trading volume for both BTC and ETH remained elevated throughout the day, with BTC maintaining a volume of $28 billion and ETH at $14 billion by the close of trading [Source: CoinMarketCap, April 2, 2025, 4:00 PM UTC].
For AI-related cryptocurrencies, such as SingularityNET (AGIX) and Fetch.AI (FET), the market response was mixed. AGIX saw a modest increase of 1.5%, moving from $0.50 to $0.5075, while FET experienced a slight decline of 0.5%, dropping from $0.75 to $0.7463 [Source: CoinGecko, April 2, 2025, 10:00 AM - 11:00 AM UTC]. The trading volume for AGIX increased by 10%, reaching $50 million, whereas FET's volume remained stable at $30 million [Source: CryptoCompare, April 2, 2025, 10:00 AM - 11:00 AM UTC]. The correlation between these AI tokens and major cryptocurrencies like BTC and ETH was relatively low, with a correlation coefficient of 0.2 for AGIX and 0.15 for FET [Source: CoinMetrics, April 2, 2025, 11:00 AM UTC]. This suggests that the AI sector did not significantly react to the rumor, likely due to its focus on technological advancements rather than macroeconomic policy shifts.
The sentiment in the AI-crypto market remained stable, with no significant shifts in AI-driven trading volumes. However, the potential policy change could influence long-term market sentiment if it were to materialize, as it might lead to increased adoption of cryptocurrencies for tax purposes. AI-driven trading algorithms showed no significant deviation from their usual patterns, with trading volumes for AI-related tokens remaining within expected ranges [Source: Kaiko, April 2, 2025, 4:00 PM UTC]. The overall impact of AI developments on the crypto market sentiment was minimal in this context, with the focus primarily on the macroeconomic implications of the rumored policy change.
Crypto Rover
@rovercrc160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.