On April 2, 2025, the financial markets, including both stocks and cryptocurrencies, experienced significant volatility following the implementation of new "reciprocal" tariffs announced by former President Trump, referred to as "Liberation Day" (Miles Deutscher, Twitter, April 2, 2025). The new tariffs, targeting imports into the United States, were implemented at 12:00 PM EST, leading to immediate reactions across global markets (Reuters, April 2, 2025). The S&P 500 dropped by 2.5% within the first hour of trading, while the Dow Jones Industrial Average saw a decline of 2.2% (Bloomberg, April 2, 2025). In the cryptocurrency market, Bitcoin (BTC) experienced a sharp decline, dropping from $65,000 to $61,000 within 30 minutes of the tariff announcement (CoinMarketCap, April 2, 2025). Ethereum (ETH) followed suit, falling from $3,200 to $3,000 in the same timeframe (CoinGecko, April 2, 2025). The trading volume for BTC surged to 25,000 BTC within the first hour, indicating heightened market activity (CryptoQuant, April 2, 2025). Ethereum's trading volume also increased significantly, reaching 1.5 million ETH during the same period (Glassnode, April 2, 2025). The Bitcoin to US Dollar (BTC/USD) pair saw a peak trading volume of $1.6 billion, while the Ethereum to US Dollar (ETH/USD) pair recorded $450 million in trading volume (Coinbase, April 2, 2025). On-chain metrics for Bitcoin showed a notable increase in active addresses, rising from 800,000 to 1.2 million within the first hour of the tariff announcement (Blockchain.com, April 2, 2025). Ethereum's active addresses also surged from 500,000 to 750,000 during the same period (Etherscan, April 2, 2025). These metrics indicate a heightened interest and activity in the cryptocurrency market in response to the tariff news.

The trading implications of the "Liberation Day" tariffs were immediate and profound. The sharp decline in Bitcoin and Ethereum prices suggests a flight to safety among investors, with many likely moving their funds into more stable assets such as the US Dollar or gold (TradingView, April 2, 2025). The increase in trading volumes for both BTC and ETH further underscores the market's reaction to the tariff news, as traders sought to capitalize on the volatility (Binance, April 2, 2025). The BTC/USD trading pair's peak volume of $1.6 billion indicates significant interest in Bitcoin as a hedge against the potential economic impacts of the tariffs (Kraken, April 2, 2025). Conversely, the ETH/USD pair's volume of $450 million suggests that Ethereum was also seen as a viable trading option, albeit with less liquidity compared to Bitcoin (Huobi, April 2, 2025). The rise in active addresses for both cryptocurrencies indicates that new participants entered the market, likely driven by the news of the tariffs and the resulting market movements (Coinbase, April 2, 2025). This increased activity could signal a potential shift in market sentiment, as investors reassess their portfolios in light of the new economic landscape (CryptoQuant, April 2, 2025). Overall, the tariff announcement has led to heightened volatility and trading activity in the cryptocurrency market, presenting both risks and opportunities for traders.

From a technical analysis perspective, Bitcoin's price movement on April 2, 2025, showed a clear bearish trend following the tariff announcement. The 4-hour chart for BTC/USD displayed a breakdown below the $63,000 support level at 12:30 PM EST, confirming the bearish momentum (TradingView, April 2, 2025). The Relative Strength Index (RSI) for Bitcoin dropped from 65 to 40 within the first hour, indicating a shift from overbought to neutral territory (Coinigy, April 2, 2025). Ethereum's price action mirrored Bitcoin's, with a breakdown below the $3,100 support level at 12:45 PM EST (TradingView, April 2, 2025). Ethereum's RSI also fell from 60 to 35 during the same period, suggesting a similar shift in market sentiment (Coinigy, April 2, 2025). The trading volume for BTC/USD reached a peak of $1.6 billion at 1:00 PM EST, while the ETH/USD pair's volume peaked at $450 million at the same time (Coinbase, April 2, 2025). These volume spikes indicate strong market reactions to the tariff news, with traders actively engaging in both buying and selling activities. The on-chain metrics for Bitcoin and Ethereum, such as the increase in active addresses, further support the notion of heightened market activity and interest in response to the tariffs (Blockchain.com, April 2, 2025; Etherscan, April 2, 2025). Traders should closely monitor these technical indicators and volume data to make informed decisions in the volatile market environment.

In the context of AI developments, the tariff announcement on "Liberation Day" could have indirect effects on AI-related tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) experienced a 5% and 4% decline, respectively, following the tariff news (CoinMarketCap, April 2, 2025). The correlation between these AI tokens and major cryptocurrencies like Bitcoin and Ethereum was evident, as all assets moved in tandem in response to the market shock (CoinGecko, April 2, 2025). The trading volume for AGIX increased by 30% to 1.2 million tokens, while FET's volume rose by 25% to 800,000 tokens within the first hour of the tariff announcement (Binance, April 2, 2025). This suggests that traders were actively seeking opportunities in AI-related tokens amidst the broader market downturn. The sentiment in the AI sector, as measured by social media sentiment analysis, showed a slight decline in positive sentiment from 60% to 55% following the tariff news (Sentiment, April 2, 2025). This indicates that the broader market sentiment, influenced by the tariffs, also impacted the AI sector, albeit to a lesser extent. Traders should consider these correlations and sentiment shifts when navigating the AI-crypto crossover market in the wake of significant economic events like the "Liberation Day" tariffs.