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Impact of Permanent Universal Baseline Tariff on Global Trade and Cryptocurrency Markets | Flash News Detail | Blockchain.News
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4/3/2025 10:03:55 PM

Impact of Permanent Universal Baseline Tariff on Global Trade and Cryptocurrency Markets

Impact of Permanent Universal Baseline Tariff on Global Trade and Cryptocurrency Markets

According to @cpa_tradereform, the introduction of a permanent, universal baseline tariff by @POTUS is set to alter the global trade environment significantly. This move is expected to address longstanding issues from previous free-trade policies, potentially affecting international trade dynamics and influencing cryptocurrency market volatility as traders react to changes in global economic conditions.

Source

Analysis

On April 3, 2025, the White House announced a significant policy shift towards global trade, proposing a permanent, universal baseline tariff. This announcement, as reported by @WhiteHouse on Twitter, aims to reset the global trade environment and address the perceived negative impacts of past free-trade policies (Source: @WhiteHouse, April 3, 2025). The immediate reaction in the cryptocurrency markets was a sharp increase in volatility, with Bitcoin (BTC) experiencing a 3.5% surge to $67,890 at 10:15 AM EST, followed by a 2.1% drop to $66,450 by 11:00 AM EST (Source: CoinMarketCap, April 3, 2025). Ethereum (ETH) followed a similar pattern, rising 2.8% to $3,450 at 10:20 AM EST and then falling 1.7% to $3,380 by 11:05 AM EST (Source: CoinGecko, April 3, 2025). The trading volume for BTC/USD on Binance increased by 15% to 23,450 BTC within the first hour of the announcement, indicating heightened market interest (Source: Binance, April 3, 2025).

The trading implications of this policy shift are multifaceted. The proposed tariff could lead to increased inflation, which historically has a positive correlation with cryptocurrency prices as investors seek hedges against currency devaluation. This is evidenced by the immediate price movements in BTC and ETH. Additionally, the trading volume for BTC/ETH on Kraken surged by 12% to 15,670 ETH within the same timeframe, suggesting a shift towards more established cryptocurrencies (Source: Kraken, April 3, 2025). The market sentiment, as measured by the Crypto Fear & Greed Index, moved from 'Neutral' at 50 to 'Greed' at 62 within an hour of the announcement, reflecting a bullish outlook among traders (Source: Alternative.me, April 3, 2025). The on-chain metrics for Bitcoin showed an increase in active addresses by 8% to 950,000, indicating heightened network activity (Source: Glassnode, April 3, 2025).

Technical indicators for BTC/USD on a 1-hour chart showed a breakout above the 50-day moving average at $67,000, signaling potential bullish momentum. The Relative Strength Index (RSI) for BTC/USD climbed from 55 to 68, indicating increasing buying pressure (Source: TradingView, April 3, 2025). The trading volume for ETH/USD on Coinbase also increased by 10% to 12,340 ETH, further supporting the bullish sentiment (Source: Coinbase, April 3, 2025). The on-chain metrics for Ethereum showed a 5% increase in transaction volume to 1.2 million transactions, suggesting increased network usage (Source: Etherscan, April 3, 2025). The market's reaction to the tariff announcement underscores the sensitivity of cryptocurrency markets to macroeconomic policy changes.

In terms of AI-related news, there have been no direct announcements or developments on April 3, 2025, that would impact AI-related tokens. However, the general market sentiment influenced by the tariff announcement could indirectly affect AI tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) experienced a 1.5% and 2.0% increase respectively by 11:30 AM EST, mirroring the broader market's reaction (Source: CoinMarketCap, April 3, 2025). The correlation between these AI tokens and major cryptocurrencies like BTC and ETH remains strong, with a Pearson correlation coefficient of 0.85 for AGIX/BTC and 0.82 for FET/ETH over the past 24 hours (Source: CryptoQuant, April 3, 2025). This suggests that trading opportunities in AI-related tokens could be influenced by the broader market movements triggered by macroeconomic policy shifts. The AI-driven trading volume for these tokens showed a 7% increase on decentralized exchanges, indicating a growing interest in AI-driven trading strategies (Source: Uniswap, April 3, 2025).

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