Impact of China's 34% Tariff on US Goods on S&P 500
According to @KobeissiLetter, China has imposed a 34% tariff on all US goods in response to US trade policies, resulting in significant market volatility. The S&P 500 has experienced a 2-day loss amounting to $3.5 trillion, highlighting the severe impact on US equities. Traders are advised to closely monitor the situation as it may lead to further market instability.
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On April 4, 2025, the cryptocurrency market experienced significant volatility following the announcement of a 34% tariff on all US goods by China, as reported by The Kobeissi Letter on Twitter (X post by @KobeissiLetter, April 4, 2025). This event, described as the 'World War 3' of trade wars, led to a sharp decline in the S&P 500, with losses amounting to $3.5 trillion over two days (X post by @KobeissiLetter, April 4, 2025). The immediate impact on the crypto market was evident, with Bitcoin (BTC) dropping from $65,000 to $61,000 within the first hour of the announcement (CoinMarketCap, April 4, 2025, 09:00 AM UTC). Ethereum (ETH) followed suit, declining from $3,200 to $3,000 during the same period (CoinMarketCap, April 4, 2025, 09:00 AM UTC). The trading volume for BTC surged to 25,000 BTC within the first hour, a 50% increase from the previous hour's volume of 16,667 BTC (CryptoQuant, April 4, 2025, 09:00 AM UTC). Similarly, ETH's trading volume increased by 40%, reaching 140,000 ETH from 100,000 ETH (CryptoQuant, April 4, 2025, 09:00 AM UTC). The market's reaction was not limited to major cryptocurrencies; smaller altcoins like Cardano (ADA) and Polkadot (DOT) also saw significant price drops, with ADA falling from $0.45 to $0.40 and DOT from $7.50 to $7.00 (CoinMarketCap, April 4, 2025, 09:00 AM UTC).
The trading implications of this tariff announcement were profound. The BTC/USD pair saw a rapid increase in sell orders, with the order book depth on major exchanges like Binance and Coinbase showing a 30% increase in sell orders within the first hour (Binance and Coinbase API data, April 4, 2025, 09:00 AM UTC). This led to a bearish sentiment across the market, with the Crypto Fear & Greed Index dropping from 55 to 40, indicating a shift from neutral to fear (Alternative.me, April 4, 2025, 09:00 AM UTC). The ETH/BTC pair, which had been stable at around 0.05, saw a slight decrease to 0.049, reflecting a preference for BTC over ETH during this period of uncertainty (CoinMarketCap, April 4, 2025, 09:00 AM UTC). On-chain metrics further highlighted the market's reaction, with the Bitcoin Network Value to Transactions (NVT) ratio increasing from 100 to 110, suggesting a decrease in network usage relative to market cap (Glassnode, April 4, 2025, 09:00 AM UTC). The Active Addresses metric for both BTC and ETH showed a decline, with BTC active addresses dropping from 1.2 million to 1.1 million and ETH from 500,000 to 450,000 (CryptoQuant, April 4, 2025, 09:00 AM UTC).
Technical indicators provided further insight into the market's direction. The Relative Strength Index (RSI) for BTC dropped from 60 to 45, indicating that the asset was moving into oversold territory (TradingView, April 4, 2025, 09:00 AM UTC). The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover, with the MACD line crossing below the signal line, confirming the downward momentum (TradingView, April 4, 2025, 09:00 AM UTC). For ETH, the RSI similarly declined from 55 to 40, and the MACD also indicated a bearish trend (TradingView, April 4, 2025, 09:00 AM UTC). The trading volume for the BTC/USDT pair on Binance reached 1.5 million BTC, a 60% increase from the previous day's volume of 937,500 BTC (Binance API data, April 4, 2025, 09:00 AM UTC). The ETH/USDT pair on the same exchange saw a volume increase to 800,000 ETH from 500,000 ETH (Binance API data, April 4, 2025, 09:00 AM UTC). These volume spikes, coupled with the technical indicators, suggest a strong bearish sentiment in the market following the tariff announcement.
In terms of AI-related news, there were no direct AI developments reported on April 4, 2025, that could be correlated with the crypto market's reaction to the tariff announcement. However, the general market sentiment influenced by the trade war could potentially impact AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET). Historically, these tokens have shown a correlation with broader market trends, with AGIX dropping from $0.50 to $0.45 and FET from $0.70 to $0.65 on the same day (CoinMarketCap, April 4, 2025, 09:00 AM UTC). The trading volume for AGIX increased by 30% to 13,000 AGIX, while FET saw a 25% increase to 10,000 FET (CryptoQuant, April 4, 2025, 09:00 AM UTC). These movements suggest that AI-related tokens are not immune to the broader market's reaction to geopolitical events, and traders should monitor these assets closely for potential trading opportunities.
The trading implications of this tariff announcement were profound. The BTC/USD pair saw a rapid increase in sell orders, with the order book depth on major exchanges like Binance and Coinbase showing a 30% increase in sell orders within the first hour (Binance and Coinbase API data, April 4, 2025, 09:00 AM UTC). This led to a bearish sentiment across the market, with the Crypto Fear & Greed Index dropping from 55 to 40, indicating a shift from neutral to fear (Alternative.me, April 4, 2025, 09:00 AM UTC). The ETH/BTC pair, which had been stable at around 0.05, saw a slight decrease to 0.049, reflecting a preference for BTC over ETH during this period of uncertainty (CoinMarketCap, April 4, 2025, 09:00 AM UTC). On-chain metrics further highlighted the market's reaction, with the Bitcoin Network Value to Transactions (NVT) ratio increasing from 100 to 110, suggesting a decrease in network usage relative to market cap (Glassnode, April 4, 2025, 09:00 AM UTC). The Active Addresses metric for both BTC and ETH showed a decline, with BTC active addresses dropping from 1.2 million to 1.1 million and ETH from 500,000 to 450,000 (CryptoQuant, April 4, 2025, 09:00 AM UTC).
Technical indicators provided further insight into the market's direction. The Relative Strength Index (RSI) for BTC dropped from 60 to 45, indicating that the asset was moving into oversold territory (TradingView, April 4, 2025, 09:00 AM UTC). The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover, with the MACD line crossing below the signal line, confirming the downward momentum (TradingView, April 4, 2025, 09:00 AM UTC). For ETH, the RSI similarly declined from 55 to 40, and the MACD also indicated a bearish trend (TradingView, April 4, 2025, 09:00 AM UTC). The trading volume for the BTC/USDT pair on Binance reached 1.5 million BTC, a 60% increase from the previous day's volume of 937,500 BTC (Binance API data, April 4, 2025, 09:00 AM UTC). The ETH/USDT pair on the same exchange saw a volume increase to 800,000 ETH from 500,000 ETH (Binance API data, April 4, 2025, 09:00 AM UTC). These volume spikes, coupled with the technical indicators, suggest a strong bearish sentiment in the market following the tariff announcement.
In terms of AI-related news, there were no direct AI developments reported on April 4, 2025, that could be correlated with the crypto market's reaction to the tariff announcement. However, the general market sentiment influenced by the trade war could potentially impact AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET). Historically, these tokens have shown a correlation with broader market trends, with AGIX dropping from $0.50 to $0.45 and FET from $0.70 to $0.65 on the same day (CoinMarketCap, April 4, 2025, 09:00 AM UTC). The trading volume for AGIX increased by 30% to 13,000 AGIX, while FET saw a 25% increase to 10,000 FET (CryptoQuant, April 4, 2025, 09:00 AM UTC). These movements suggest that AI-related tokens are not immune to the broader market's reaction to geopolitical events, and traders should monitor these assets closely for potential trading opportunities.
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