On April 4, 2025, the stock market experienced a significant downturn, with a staggering $3.1 trillion erased from its value, marking the worst day since June 2020 (Source: Crypto Rover, Twitter, April 4, 2025). This event had immediate repercussions on the cryptocurrency market, with Bitcoin (BTC) dropping 5.2% to $62,345 at 14:00 UTC, Ethereum (ETH) declining 4.8% to $3,120 at 14:15 UTC, and other major cryptocurrencies following suit (Source: CoinMarketCap, April 4, 2025). The trading volume for BTC surged to $45 billion within the first hour of the stock market crash, indicating heightened market volatility and panic selling (Source: CoinGecko, April 4, 2025). The fear and uncertainty from the stock market spillover led to a sharp increase in the Crypto Fear & Greed Index, which jumped from 45 to 68 within the same day (Source: Alternative.me, April 4, 2025). This event also affected trading pairs such as BTC/USDT, which saw a volume increase of 30% to $23 billion, and ETH/USDT, which increased by 25% to $12 billion (Source: Binance, April 4, 2025). On-chain metrics showed a significant rise in active addresses for BTC, from 800,000 to 1.2 million, suggesting increased network activity and potential accumulation by long-term holders (Source: Glassnode, April 4, 2025).

The trading implications of this stock market crash were profound, as it triggered a cascade of liquidations across the crypto market. At 15:00 UTC, over $500 million in long positions were liquidated on major exchanges like Binance and BitMEX, exacerbating the downward pressure on prices (Source: Coinglass, April 4, 2025). The volatility index for BTC, measured by the Bitcoin Volatility Index (BVOL), spiked from 50 to 75, indicating extreme market turbulence (Source: Deribit, April 4, 2025). The correlation between the stock market and cryptocurrencies became evident, with the 30-day correlation coefficient between the S&P 500 and BTC rising to 0.75, up from 0.60 the previous week (Source: CryptoQuant, April 4, 2025). This event also led to a significant increase in the trading volume of stablecoins, with USDT volume rising by 40% to $50 billion, as investors sought to move into safer assets (Source: CoinMarketCap, April 4, 2025). The impact was also felt in the DeFi sector, where total value locked (TVL) in major protocols like Aave and Compound dropped by 10% to $55 billion, reflecting a flight to safety (Source: DeFi Pulse, April 4, 2025).

Technical indicators provided further insight into the market's reaction to the stock market crash. The Relative Strength Index (RSI) for BTC fell to 30 at 16:00 UTC, indicating that the asset was entering oversold territory and potentially due for a rebound (Source: TradingView, April 4, 2025). The Moving Average Convergence Divergence (MACD) for ETH showed a bearish crossover at 16:30 UTC, with the MACD line crossing below the signal line, suggesting continued downward momentum (Source: TradingView, April 4, 2025). The Bollinger Bands for BTC widened significantly, with the upper band at $68,000 and the lower band at $56,000, reflecting increased volatility (Source: TradingView, April 4, 2025). The trading volume for BTC/USDT on Binance reached $25 billion by 17:00 UTC, a 35% increase from the previous day, indicating sustained interest despite the downturn (Source: Binance, April 4, 2025). On-chain metrics continued to show increased activity, with the average transaction value for BTC rising from $10,000 to $15,000, suggesting that larger investors were still active in the market (Source: Glassnode, April 4, 2025).