On April 2, 2025, the government missed the deadline to file a reply in support of its stay motion, as stated by Paul Grewal, Chief Legal Officer at Coinbase, on Twitter (Grewal, 2025). This event has triggered notable movements in the cryptocurrency market, particularly affecting Bitcoin (BTC) and Ethereum (ETH). At 10:00 AM EST on April 2, BTC experienced a sudden surge from $64,320 to $65,800 within 30 minutes, a 2.3% increase, reflecting heightened market optimism (Coinbase, 2025). Simultaneously, ETH rose from $3,120 to $3,180, a 1.9% increase during the same period (Binance, 2025). The trading volume for BTC on Coinbase increased from an average of 10,000 BTC per hour to 15,000 BTC per hour, while ETH volumes on Binance jumped from 50,000 ETH to 75,000 ETH per hour, indicating strong market participation (Coinbase, 2025; Binance, 2025). This spike in trading activity suggests that investors were reacting to the news about the government's inaction on the stay motion, interpreting it as a potential positive development for the crypto industry's regulatory environment.

The immediate trading implications of the government's missed deadline have been profound, particularly on trading pairs like BTC/USD and ETH/USD. By 11:00 AM EST, the BTC/USD pair reached a high of $66,200 before retracing to $65,500 by noon, a volatility spike of 1.06% within an hour (Coinbase, 2025). The ETH/USD pair similarly saw a high of $3,210 and a subsequent retracement to $3,170, a 1.25% volatility spike (Binance, 2025). These movements were accompanied by significant shifts in the options market, with the implied volatility for BTC options increasing from 60% to 65% and ETH options from 55% to 60% within the same timeframe (Deribit, 2025). The increased volatility suggests that traders are positioning themselves for potential further regulatory developments, with a clear bullish sentiment reflected in the options market. Additionally, on-chain metrics showed a surge in active addresses for both BTC and ETH, with BTC's active addresses increasing from 800,000 to 900,000 and ETH's from 400,000 to 450,000, indicating heightened network activity and investor engagement (Glassnode, 2025).

Technical indicators and volume data further corroborate the market's reaction to the government's missed deadline. At 12:00 PM EST, the Relative Strength Index (RSI) for BTC on a 1-hour chart moved from 65 to 72, indicating overbought conditions and potential for a short-term correction (TradingView, 2025). Similarly, ETH's RSI increased from 60 to 68, also suggesting overbought conditions (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for both BTC and ETH showed bullish crossovers, with BTC's MACD line crossing above the signal line at 11:30 AM EST and ETH's at 11:45 AM EST, reinforcing the bullish sentiment (TradingView, 2025). Trading volumes remained elevated throughout the day, with BTC volumes on Coinbase averaging 14,000 BTC per hour and ETH volumes on Binance averaging 70,000 ETH per hour until 6:00 PM EST (Coinbase, 2025; Binance, 2025). These technical indicators and volume data suggest that the market is closely monitoring regulatory developments and adjusting positions accordingly.

In terms of AI-related news, there have been no direct AI developments reported on April 2, 2025, that would impact the crypto market. However, the correlation between AI and crypto markets remains a critical area of interest. Historically, positive AI developments have led to increased interest in AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET). For instance, on March 15, 2025, when a major AI company announced a partnership with a blockchain platform, AGIX saw a 10% increase in price within 24 hours, and FET experienced a 7% rise (CoinMarketCap, 2025). While there is no direct AI news on April 2, the general market sentiment influenced by regulatory news could indirectly affect AI tokens. If the crypto market continues to react positively to regulatory developments, it could lead to increased trading volumes and interest in AI-related tokens, as investors might see them as part of the broader crypto ecosystem benefiting from a favorable regulatory environment. Monitoring AI-driven trading volumes and sentiment analysis tools like Santiment could provide further insights into potential trading opportunities at the AI-crypto crossover (Santiment, 2025).