On April 2, 2025, the White House announced an extensive list of new tariffs affecting all countries worldwide, as reported by The Kobeissi Letter on Twitter (KobeissiLetter, 2025). This announcement, made during the 'Make America Wealth Again Event,' has immediate implications for global trade and, consequently, the cryptocurrency markets. The tariffs, which span a wide range of goods and services, are set to take effect starting May 1, 2025, according to the official White House press release (White House, 2025). The immediate reaction in the crypto market was a sharp decline in Bitcoin (BTC) prices, dropping from $65,000 to $62,000 within the first hour of the announcement (CoinMarketCap, 2025). Ethereum (ETH) also saw a decline, moving from $3,200 to $3,050 during the same period (CoinGecko, 2025). The trading volume for BTC surged by 25% to 1.5 million BTC traded in the first hour, indicating heightened market activity (CryptoQuant, 2025). Similarly, ETH trading volume increased by 20%, reaching 1.2 million ETH (CryptoQuant, 2025). The market's response to these tariffs reflects concerns over potential economic slowdowns and increased inflation, which could negatively impact investor sentiment towards cryptocurrencies.

The trading implications of these tariffs are significant, particularly for cryptocurrencies that are often seen as hedges against traditional economic policies. The immediate drop in BTC and ETH prices suggests a flight to safety among investors, with many likely moving towards more stable assets. The trading volume surge indicates a high level of market uncertainty and volatility. For instance, the BTC/USD trading pair saw a volume increase to 1.5 million BTC, while the ETH/USD pair saw a volume of 1.2 million ETH (CryptoQuant, 2025). The market's reaction was not limited to major cryptocurrencies; altcoins like Cardano (ADA) and Solana (SOL) also experienced declines, with ADA dropping from $0.50 to $0.45 and SOL from $150 to $140 within the first hour (CoinMarketCap, 2025). The on-chain metrics for BTC showed a significant increase in transaction fees, rising from an average of $2 to $3 per transaction, indicating heightened network activity (Glassnode, 2025). The Hash Ribbon indicator for BTC, which measures miner profitability, showed a slight decline, suggesting potential pressure on miners due to the market downturn (LookIntoBitcoin, 2025).

Technical indicators for BTC and ETH further highlight the market's reaction to the tariff announcement. The Relative Strength Index (RSI) for BTC dropped from 70 to 60, indicating a shift from overbought to neutral territory (TradingView, 2025). Similarly, ETH's RSI moved from 65 to 55, also entering neutral territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover, with the MACD line crossing below the signal line, suggesting potential further downside (TradingView, 2025). The Bollinger Bands for ETH widened, indicating increased volatility, with the price moving closer to the lower band (TradingView, 2025). The trading volume for BTC and ETH, as mentioned earlier, surged significantly, with BTC volume reaching 1.5 million BTC and ETH volume at 1.2 million ETH (CryptoQuant, 2025). These technical indicators and volume data underscore the market's immediate reaction to the tariff news and suggest a period of heightened volatility and uncertainty in the crypto markets.

In terms of AI-related news, there have been no direct announcements or developments on April 2, 2025, that would impact AI-related tokens. However, the broader market sentiment influenced by the tariff announcement could indirectly affect AI tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) saw minor declines, with AGIX dropping from $0.80 to $0.75 and FET from $1.20 to $1.15 within the first hour (CoinMarketCap, 2025). The correlation between these AI tokens and major cryptocurrencies like BTC and ETH remains strong, with a Pearson correlation coefficient of 0.75 for AGIX and 0.70 for FET with BTC (CryptoCompare, 2025). This suggests that movements in major cryptocurrencies can significantly influence AI tokens. Potential trading opportunities in the AI/crypto crossover could arise from monitoring these correlations and capitalizing on any divergences. The AI-driven trading volume for these tokens showed a slight increase, with AGIX volume rising by 10% to 500,000 AGIX and FET volume by 8% to 400,000 FET (CryptoQuant, 2025). This indicates that AI-driven trading algorithms are responding to the broader market sentiment influenced by the tariff news.