On April 17, 2025, a significant geopolitical event unfolded when the US accused a Chinese firm of aiding Yemen's Houthis in targeting American warships, as reported by the Financial Times. This accusation led to immediate reactions in the cryptocurrency markets, particularly affecting trading volumes and price movements across various digital assets. At 10:00 AM EST on the same day, Bitcoin (BTC) experienced a sharp decline of 3.5%, dropping from $65,000 to $62,700 within 15 minutes, as per data from CoinMarketCap. Concurrently, Ethereum (ETH) saw a similar downtrend, falling by 2.8% from $3,200 to $3,110, according to TradingView. The trading volume for BTC surged by 40% to 2.1 billion in the hour following the news, indicating heightened market volatility, as reported by CryptoQuant. Meanwhile, smaller cap cryptocurrencies like Cardano (ADA) and Polkadot (DOT) showed increased volatility, with ADA dropping 5% and DOT declining by 4.3%, as noted by CoinGecko at 10:15 AM EST.

The geopolitical tension triggered a risk-off sentiment among traders, leading to a sell-off in riskier assets, including cryptocurrencies. This event had a direct impact on trading strategies, with many traders shifting towards more stable assets like USDT and USDC. On the BTC/USDT trading pair, the price dipped to $62,500 at 10:30 AM EST, with the trading volume reaching 1.5 billion, as per data from Binance. Similarly, the ETH/USDT pair saw a volume increase of 35% to 800 million, with the price hitting $3,100 at the same time, according to Kraken. The Fear and Greed Index, a key market sentiment indicator, plummeted from 65 to 45 within an hour, signaling increased fear in the market, as reported by Alternative.me. Moreover, the volatility index for cryptocurrencies, as measured by the Crypto Volatility Index (CVI), rose from 70 to 85, reflecting the heightened uncertainty, as per data from CVI.io.

Technical analysis of the market post-event revealed significant shifts in key indicators. The Relative Strength Index (RSI) for Bitcoin dropped from 60 to 45, indicating the asset entered an oversold territory at 10:45 AM EST, according to TradingView. The Moving Average Convergence Divergence (MACD) for Ethereum showed a bearish crossover, with the MACD line crossing below the signal line at 11:00 AM EST, as reported by Coinigy. On-chain metrics further corroborated the market's reaction, with the Bitcoin Network Hashrate dropping by 2% to 300 EH/s, suggesting miners were possibly selling off their holdings, as per Blockchain.com data. The transaction volume on the Ethereum network increased by 15% to 1.2 million transactions, indicating active trading and potential panic selling, as reported by Etherscan at 11:15 AM EST. These detailed metrics and indicators underscore the immediate and profound impact of geopolitical news on cryptocurrency markets.

FAQ:
What was the immediate impact of the US accusation on cryptocurrency prices?
The immediate impact was a sharp decline in major cryptocurrencies like Bitcoin and Ethereum, with Bitcoin dropping 3.5% to $62,700 and Ethereum falling 2.8% to $3,110 within 15 minutes of the news breaking.

How did trading volumes change following the geopolitical news?
Trading volumes surged significantly, with Bitcoin's volume increasing by 40% to 2.1 billion and Ethereum's volume rising by 35% to 800 million in the hour following the news.

What technical indicators suggested a bearish market sentiment post-event?
The RSI for Bitcoin dropped to 45, indicating an oversold market, and the MACD for Ethereum showed a bearish crossover, both suggesting a bearish market sentiment.