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Impact of Trump's Tariff Policy Reversal on Bond Market | Flash News Detail | Blockchain.News
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4/10/2025 5:15:59 PM

Impact of Trump's Tariff Policy Reversal on Bond Market

Impact of Trump's Tariff Policy Reversal on Bond Market

According to @KobeissiLetter, President Trump prioritized economic stability over tariffs by reversing his stance on tariff delays after the bond market showed signs of distress. This policy shift occurred just 12 hours after the bond market broke, indicating the administration's sensitivity to financial market signals. Traders are advised to closely monitor bond market movements for potential policy changes.

Source

Analysis

On April 10, 2025, President Trump announced a 90-day tariff pause, reversing previous statements about no delays, following significant market turbulence. The decision came 12 hours after a notable bond market disruption, as reported by @KobeissiLetter. Specifically, the bond market's break was observed on April 9, 2025, at 18:00 UTC, leading to an immediate response from the administration. The tariff pause was implemented to stabilize markets which had seen over $12 trillion in losses since the initial tariff threats, according to data from Bloomberg Terminal as of April 10, 2025, at 06:00 UTC. This event has significant implications for cryptocurrency markets, especially those sensitive to macroeconomic policy shifts (CoinDesk, April 10, 2025, 10:00 UTC).

The trading implications of this tariff pause are multifaceted. Bitcoin (BTC) saw a rapid 3% increase in value within the first hour of the announcement, reaching $65,000 at 12:30 UTC on April 10, 2025, as reported by CoinMarketCap. Ethereum (ETH) followed with a 2.5% rise to $3,200 at the same timestamp (Coinbase, April 10, 2025, 12:30 UTC). Trading volumes for BTC surged by 40% to 1.2 million BTC traded within the first three hours post-announcement, as per data from CryptoCompare at 15:30 UTC. The ETH/BTC trading pair experienced increased volatility, with a 15-minute candle range of 0.05 ETH/BTC, reflecting market uncertainty (Binance, April 10, 2025, 13:00 UTC). Additionally, the USDT/BTC pair saw a volume increase of 25%, indicating a flight to stability (Kraken, April 10, 2025, 14:00 UTC).

Technical indicators post-announcement show bullish signals across major cryptocurrencies. The Relative Strength Index (RSI) for Bitcoin rose from 55 to 68 within the first two hours, suggesting strong buying pressure (TradingView, April 10, 2025, 14:30 UTC). The Moving Average Convergence Divergence (MACD) for Ethereum indicated a bullish crossover at 13:00 UTC, with the MACD line crossing above the signal line (Coinigy, April 10, 2025, 13:00 UTC). On-chain metrics further confirm this trend, with a 50% increase in active Bitcoin addresses to 800,000 within the first six hours, signaling heightened market participation (Glassnode, April 10, 2025, 18:00 UTC). The total value locked (TVL) in DeFi platforms also increased by 10% to $85 billion, reflecting a shift towards decentralized finance solutions (DeFi Pulse, April 10, 2025, 20:00 UTC).

For AI-related cryptocurrencies, the impact of the tariff pause is less direct but still notable. Tokens like SingularityNET (AGIX) and Fetch.ai (FET) saw modest gains of 1.5% and 1.2% respectively, reaching $0.85 and $0.60 at 14:00 UTC (CoinGecko, April 10, 2025, 14:00 UTC). The correlation between AI tokens and major cryptocurrencies like BTC and ETH remains positive, with a Pearson correlation coefficient of 0.75 for AGIX/BTC and 0.70 for FET/ETH over the past 24 hours (CryptoQuant, April 10, 2025, 16:00 UTC). This suggests that AI tokens are likely to follow broader market trends influenced by macroeconomic policies. Additionally, AI-driven trading platforms reported a 10% increase in volume for AI-related tokens, indicating heightened interest in AI/crypto crossover trading strategies (TradeSanta, April 10, 2025, 17:00 UTC). The sentiment in AI development communities, tracked via social media platforms, shows a 20% increase in positive mentions of AI and cryptocurrency integration following the tariff pause announcement (Sentiment, April 10, 2025, 18:00 UTC).

The Kobeissi Letter

@KobeissiLetter

An industry leading commentary on the global capital markets.