The Kobeissi Letter Discusses Potential US Trade Deals and EU Tariff Posturing

According to The Kobeissi Letter, there is speculation about whether President Trump will negotiate new trade deals, similar to previous agreements with Canada and Mexico, as the administration considers tariffs on EU allies. The analysis suggests that these tariffs might be strategic posturing rather than firm policy commitments.
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On February 26, 2025, The Kobeissi Letter tweeted an analysis suggesting that President Trump might negotiate a new trade deal before implementing tariffs, referencing his previous deals with Canada and Mexico (KobeissiLetter, 2025). This potential trade negotiation has direct implications for the cryptocurrency market, particularly in relation to AI-driven tokens. At 10:00 AM EST on the same day, Bitcoin (BTC) was trading at $58,200, with a 24-hour trading volume of $35 billion (CoinMarketCap, 2025). Ethereum (ETH) was at $3,200 with a volume of $18 billion (CoinMarketCap, 2025). The anticipation of a new trade deal led to a slight increase in trading volumes across major exchanges, with Binance reporting a 5% increase in BTC trading volume to $10.5 billion (Binance, 2025). The sentiment in the market was cautiously optimistic, with many traders expecting a positive outcome from any potential deal that could boost economic stability and, by extension, the crypto market.
The trading implications of a potential Trump trade deal are significant, especially for AI-related tokens. At 11:00 AM EST, the AI token SingularityNET (AGIX) saw a 3% increase in price to $0.55, with trading volumes rising by 7% to $120 million (CoinGecko, 2025). This movement can be attributed to the market's anticipation of increased AI investment in the wake of a favorable trade deal. The trading pair AGIX/BTC on Binance showed increased activity, with the volume reaching $3 million, up from the previous day's $2.8 million (Binance, 2025). Additionally, the correlation between AI tokens and major cryptocurrencies like BTC and ETH became more pronounced, with a Pearson correlation coefficient of 0.75 between AGIX and BTC over the past 24 hours (CryptoQuant, 2025). This suggests that AI tokens are increasingly seen as a hedge or complementary investment to major cryptocurrencies in the face of macroeconomic news.
Technical indicators on February 26, 2025, further supported the market's reaction to the potential trade deal. The Relative Strength Index (RSI) for BTC was at 65, indicating that the market was neither overbought nor oversold (TradingView, 2025). For ETH, the RSI was at 62 (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover at 10:30 AM EST, signaling potential upward momentum (TradingView, 2025). On-chain metrics also reflected the market's sentiment, with the number of active Bitcoin addresses increasing by 2% to 950,000 (Glassnode, 2025). The trading volume for AI tokens like AGIX on decentralized exchanges (DEXs) increased by 10% to $45 million, indicating strong retail interest in AI-driven assets (Uniswap, 2025). The AI-crypto market correlation was evident in the trading patterns, with AI tokens closely following the trends set by major cryptocurrencies.
In terms of AI developments, the potential trade deal could lead to increased investment in AI technologies, directly impacting AI-related tokens. On February 25, 2025, a report from the AI Institute highlighted that global AI investment was projected to grow by 15% in the next quarter, driven by favorable trade policies (AI Institute, 2025). This news was followed by a 5% increase in the trading volume of AI tokens on centralized exchanges (CEXs), reaching $2.5 billion (CoinGecko, 2025). The correlation between AI developments and the crypto market was evident, with AI-driven trading algorithms showing increased activity, leading to a 3% rise in overall crypto market volume to $100 billion (CryptoQuant, 2025). The sentiment in the market, as measured by the Crypto Fear & Greed Index, shifted from 'Neutral' to 'Greedy' following the news, indicating a positive outlook for both AI and crypto assets (Alternative.me, 2025).
The trading implications of a potential Trump trade deal are significant, especially for AI-related tokens. At 11:00 AM EST, the AI token SingularityNET (AGIX) saw a 3% increase in price to $0.55, with trading volumes rising by 7% to $120 million (CoinGecko, 2025). This movement can be attributed to the market's anticipation of increased AI investment in the wake of a favorable trade deal. The trading pair AGIX/BTC on Binance showed increased activity, with the volume reaching $3 million, up from the previous day's $2.8 million (Binance, 2025). Additionally, the correlation between AI tokens and major cryptocurrencies like BTC and ETH became more pronounced, with a Pearson correlation coefficient of 0.75 between AGIX and BTC over the past 24 hours (CryptoQuant, 2025). This suggests that AI tokens are increasingly seen as a hedge or complementary investment to major cryptocurrencies in the face of macroeconomic news.
Technical indicators on February 26, 2025, further supported the market's reaction to the potential trade deal. The Relative Strength Index (RSI) for BTC was at 65, indicating that the market was neither overbought nor oversold (TradingView, 2025). For ETH, the RSI was at 62 (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover at 10:30 AM EST, signaling potential upward momentum (TradingView, 2025). On-chain metrics also reflected the market's sentiment, with the number of active Bitcoin addresses increasing by 2% to 950,000 (Glassnode, 2025). The trading volume for AI tokens like AGIX on decentralized exchanges (DEXs) increased by 10% to $45 million, indicating strong retail interest in AI-driven assets (Uniswap, 2025). The AI-crypto market correlation was evident in the trading patterns, with AI tokens closely following the trends set by major cryptocurrencies.
In terms of AI developments, the potential trade deal could lead to increased investment in AI technologies, directly impacting AI-related tokens. On February 25, 2025, a report from the AI Institute highlighted that global AI investment was projected to grow by 15% in the next quarter, driven by favorable trade policies (AI Institute, 2025). This news was followed by a 5% increase in the trading volume of AI tokens on centralized exchanges (CEXs), reaching $2.5 billion (CoinGecko, 2025). The correlation between AI developments and the crypto market was evident, with AI-driven trading algorithms showing increased activity, leading to a 3% rise in overall crypto market volume to $100 billion (CryptoQuant, 2025). The sentiment in the market, as measured by the Crypto Fear & Greed Index, shifted from 'Neutral' to 'Greedy' following the news, indicating a positive outlook for both AI and crypto assets (Alternative.me, 2025).
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.