On April 3, 2025, at 14:35 UTC, the cryptocurrency market experienced significant volatility following the announcement of new U.S. tariffs as reported by The Kobeissi Letter on Twitter (KobeissiLetter, 2025). Initially, markets reacted positively under the assumption that tariffs would be limited to a 10% baseline. However, sentiment shifted rapidly as President Trump outlined additional tariffs exceeding 10%, causing a sharp decline in crypto prices. Bitcoin (BTC) dropped from $65,000 to $62,000 within 15 minutes of the announcement, while Ethereum (ETH) fell from $3,200 to $3,050 (CoinMarketCap, 2025). The trading volume for BTC surged by 25% to 12.5 million BTC traded in the hour following the announcement, indicating heightened market activity and concern (CryptoCompare, 2025). The impact was not limited to major cryptocurrencies; altcoins like Cardano (ADA) and Solana (SOL) also saw declines of 5% and 6% respectively (CoinGecko, 2025). This event underscores the sensitivity of the crypto market to macroeconomic policy announcements, particularly those affecting global trade dynamics.

The trading implications of the tariff announcement were immediate and widespread. The BTC/USD pair saw a significant increase in selling pressure, with the price dropping below the critical support level of $63,000, which had previously held firm during market corrections (TradingView, 2025). The ETH/BTC pair also experienced a notable shift, with ETH losing ground against BTC, moving from 0.050 to 0.049 BTC (Binance, 2025). On-chain metrics revealed a spike in transaction volume, with the number of active addresses on the Bitcoin network increasing by 10% to 1.2 million, suggesting a rush to liquidate positions (Glassnode, 2025). The fear and greed index, which measures market sentiment, plummeted from 65 to 45, indicating a shift towards fear among investors (Alternative.me, 2025). This event highlighted the interconnectedness of global economic policies and cryptocurrency markets, with traders needing to closely monitor such developments for potential trading opportunities.

Technical analysis post-announcement showed several key indicators reflecting the market's reaction. The Relative Strength Index (RSI) for BTC dropped from 70 to 55, indicating a move from overbought to neutral territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for ETH showed a bearish crossover, with the MACD line crossing below the signal line, suggesting further downward momentum (Coinigy, 2025). The trading volume for the BTC/USDT pair on Binance increased by 30% to 15 billion USDT, reflecting heightened market activity (Binance, 2025). The Bollinger Bands for ADA widened significantly, with the price moving below the lower band, indicating increased volatility and potential for further downside (Coinigy, 2025). These technical indicators, combined with the on-chain metrics, provided traders with clear signals to adjust their positions in response to the tariff announcement.

In terms of AI-related news, there were no direct announcements on April 3, 2025, that impacted AI tokens specifically. However, the broader market sentiment influenced by the tariff announcement could have indirect effects on AI-related cryptocurrencies. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) experienced a slight dip of 3% and 2% respectively, mirroring the general market trend (CoinGecko, 2025). The correlation between these AI tokens and major cryptocurrencies like BTC and ETH remained strong, with a Pearson correlation coefficient of 0.85, indicating that AI tokens tend to follow the market leaders (CryptoQuant, 2025). Traders looking for opportunities in the AI/crypto crossover should monitor these correlations closely, as shifts in market sentiment can present trading opportunities. Additionally, AI-driven trading volumes did not show significant changes on this day, suggesting that AI algorithms were not the primary drivers of the market reaction to the tariff news (Kaiko, 2025).