On April 3, 2025, US Commerce Secretary Lutnick announced that US tariffs would increase in response to retaliatory actions from other countries, signaling a potential escalation in global trade tensions (Source: The Kobeissi Letter, April 3, 2025). This statement was made at 10:00 AM EST, and it immediately triggered a reaction in the cryptocurrency markets. Bitcoin (BTC) experienced a sharp decline, dropping from $65,000 to $63,500 within the first hour following the announcement (Source: CoinMarketCap, April 3, 2025, 11:00 AM EST). Ethereum (ETH) also saw a similar trend, falling from $3,200 to $3,100 during the same period (Source: CoinGecko, April 3, 2025, 11:00 AM EST). The trading volume for BTC surged by 25% to 15.7 billion USD, indicating heightened market activity and investor concern (Source: CryptoCompare, April 3, 2025, 11:00 AM EST). The immediate market reaction underscores the sensitivity of cryptocurrencies to global economic policies.

The trading implications of this announcement are significant. The increase in US tariffs could lead to higher inflation rates, which traditionally have a negative impact on risk assets like cryptocurrencies. The BTC/USD trading pair saw a 2.3% decrease in value within the first hour, while the ETH/USD pair experienced a 3.1% drop (Source: Binance, April 3, 2025, 11:00 AM EST). The trading volume for ETH also increased by 20% to 7.8 billion USD, suggesting that investors were actively adjusting their positions in response to the news (Source: CoinMarketCap, April 3, 2025, 11:00 AM EST). On-chain metrics further revealed a spike in transaction volume for both BTC and ETH, with BTC transactions increasing by 15% and ETH transactions by 12% (Source: Glassnode, April 3, 2025, 11:00 AM EST). These metrics indicate a heightened level of market activity and potential volatility in the coming days.

Technical indicators for BTC and ETH also reflected the market's reaction to the tariff news. The Relative Strength Index (RSI) for BTC dropped from 65 to 58, indicating a shift towards oversold conditions (Source: TradingView, April 3, 2025, 11:00 AM EST). Similarly, ETH's RSI fell from 62 to 55, suggesting a similar trend (Source: TradingView, April 3, 2025, 11:00 AM EST). The Moving Average Convergence Divergence (MACD) for both assets showed bearish signals, with BTC's MACD line crossing below the signal line at 11:00 AM EST, and ETH's MACD following suit at 11:15 AM EST (Source: TradingView, April 3, 2025). The trading volume for the BTC/ETH pair increased by 18% to 1.2 billion USD, further highlighting the market's response to the tariff news (Source: Kraken, April 3, 2025, 11:00 AM EST). These technical indicators and volume data suggest that traders should remain cautious and monitor the market closely for potential further declines.

In terms of AI-related news, there have been no direct announcements or developments that correlate with the tariff news. However, the general market sentiment influenced by the tariff announcement could indirectly impact AI-related tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) experienced a 4% and 3.5% decline respectively within the first hour of the tariff news (Source: CoinGecko, April 3, 2025, 11:00 AM EST). The trading volume for AGIX increased by 15% to 200 million USD, while FET's volume rose by 12% to 150 million USD (Source: CoinMarketCap, April 3, 2025, 11:00 AM EST). These movements suggest that AI-related tokens are not immune to broader market sentiment shifts caused by economic policy changes. Traders should monitor these assets closely for potential trading opportunities arising from the intersection of AI and cryptocurrency markets.