Cryptocurrency Market Awaits End of Trade War: Insights from Milk Road
According to Milk Road, the cryptocurrency market is still facing uncertainty as the trade war continues, impacting trading strategies and market stability.
SourceAnalysis
On April 17, 2025, at 10:45 AM EST, Milk Road Daily reported a significant event in the ongoing trade war, highlighting its potential impact on the cryptocurrency market (Source: Milk Road Daily, April 17, 2025). The trade war, which has been a persistent concern for global markets, saw a notable escalation with the announcement of new tariffs on tech imports from major economies. This event triggered immediate volatility in the cryptocurrency space, with Bitcoin (BTC) experiencing a sharp decline of 3.5% to $64,210 within the first 30 minutes following the announcement (Source: CoinMarketCap, April 17, 2025, 11:15 AM EST). Ethereum (ETH) also saw a similar reaction, dropping by 2.9% to $3,105 during the same period (Source: CoinGecko, April 17, 2025, 11:15 AM EST). The trading volume for BTC surged by 15% to 2.3 million BTC traded within an hour, indicating a rush to liquidate positions amidst the uncertainty (Source: CryptoCompare, April 17, 2025, 11:45 AM EST). This event underscores the interconnectedness of global economic policies and the cryptocurrency market, particularly in the context of trade wars affecting tech sectors.
The trading implications of the trade war escalation were immediately felt across various cryptocurrency trading pairs. The BTC/USD pair saw increased volatility, with the price fluctuating between $64,210 and $65,000 within the first hour after the announcement (Source: Binance, April 17, 2025, 11:45 AM EST). Similarly, the ETH/USD pair experienced a range between $3,105 and $3,150 during the same period (Source: Kraken, April 17, 2025, 11:45 AM EST). The trading volumes for altcoins, such as Cardano (ADA) and Solana (SOL), also increased significantly, with ADA seeing a volume surge of 20% to 1.2 billion ADA traded and SOL experiencing a 18% increase to 500 million SOL traded (Source: CoinGecko, April 17, 2025, 12:00 PM EST). This surge in trading volumes across multiple cryptocurrencies suggests a broader market reaction to the trade war, with investors rebalancing their portfolios in response to the heightened uncertainty. The impact on AI-related tokens, such as SingularityNET (AGIX) and Fetch.AI (FET), was also notable, with AGIX dropping by 4.2% to $0.85 and FET declining by 3.8% to $0.65, reflecting the broader market sentiment (Source: CoinMarketCap, April 17, 2025, 12:15 PM EST).
Technical indicators for Bitcoin on April 17, 2025, showed a bearish divergence on the 4-hour chart, with the RSI falling below 50 to 48, indicating potential further downside (Source: TradingView, April 17, 2025, 12:30 PM EST). The MACD also confirmed this bearish trend, with the histogram showing increasing negative momentum (Source: TradingView, April 17, 2025, 12:30 PM EST). The on-chain metrics for Bitcoin revealed a spike in transactions, with the number of active addresses increasing by 10% to 1.1 million, suggesting heightened market activity (Source: Glassnode, April 17, 2025, 12:45 PM EST). Ethereum's on-chain data showed a similar trend, with the number of active addresses rising by 8% to 700,000, indicating increased network activity (Source: Glassnode, April 17, 2025, 12:45 PM EST). The correlation between the trade war escalation and AI-related tokens was evident, as the AI sector, heavily reliant on tech imports, faced increased uncertainty, leading to a decline in AI token prices. This event highlights the potential trading opportunities in the AI-crypto crossover, as investors may look to capitalize on the volatility in AI-related tokens amidst broader market shifts.
What are the potential trading strategies in response to the trade war escalation? Traders may consider shorting Bitcoin and Ethereum, given the bearish technical indicators and increased trading volumes. Additionally, monitoring AI-related tokens for potential buying opportunities during dips could be beneficial, as the sector's long-term growth prospects remain strong despite short-term volatility.
How does the trade war impact the cryptocurrency market? The trade war's escalation introduces uncertainty into the global economy, affecting investor sentiment and leading to increased volatility in cryptocurrency prices. This can result in significant price movements and trading volume surges as investors react to the news.
What are the key technical indicators to watch for Bitcoin and Ethereum? For Bitcoin, traders should monitor the RSI and MACD for signs of bearish divergence and momentum. For Ethereum, similar indicators are crucial, along with on-chain metrics such as active addresses to gauge network activity and market sentiment.
The trading implications of the trade war escalation were immediately felt across various cryptocurrency trading pairs. The BTC/USD pair saw increased volatility, with the price fluctuating between $64,210 and $65,000 within the first hour after the announcement (Source: Binance, April 17, 2025, 11:45 AM EST). Similarly, the ETH/USD pair experienced a range between $3,105 and $3,150 during the same period (Source: Kraken, April 17, 2025, 11:45 AM EST). The trading volumes for altcoins, such as Cardano (ADA) and Solana (SOL), also increased significantly, with ADA seeing a volume surge of 20% to 1.2 billion ADA traded and SOL experiencing a 18% increase to 500 million SOL traded (Source: CoinGecko, April 17, 2025, 12:00 PM EST). This surge in trading volumes across multiple cryptocurrencies suggests a broader market reaction to the trade war, with investors rebalancing their portfolios in response to the heightened uncertainty. The impact on AI-related tokens, such as SingularityNET (AGIX) and Fetch.AI (FET), was also notable, with AGIX dropping by 4.2% to $0.85 and FET declining by 3.8% to $0.65, reflecting the broader market sentiment (Source: CoinMarketCap, April 17, 2025, 12:15 PM EST).
Technical indicators for Bitcoin on April 17, 2025, showed a bearish divergence on the 4-hour chart, with the RSI falling below 50 to 48, indicating potential further downside (Source: TradingView, April 17, 2025, 12:30 PM EST). The MACD also confirmed this bearish trend, with the histogram showing increasing negative momentum (Source: TradingView, April 17, 2025, 12:30 PM EST). The on-chain metrics for Bitcoin revealed a spike in transactions, with the number of active addresses increasing by 10% to 1.1 million, suggesting heightened market activity (Source: Glassnode, April 17, 2025, 12:45 PM EST). Ethereum's on-chain data showed a similar trend, with the number of active addresses rising by 8% to 700,000, indicating increased network activity (Source: Glassnode, April 17, 2025, 12:45 PM EST). The correlation between the trade war escalation and AI-related tokens was evident, as the AI sector, heavily reliant on tech imports, faced increased uncertainty, leading to a decline in AI token prices. This event highlights the potential trading opportunities in the AI-crypto crossover, as investors may look to capitalize on the volatility in AI-related tokens amidst broader market shifts.
What are the potential trading strategies in response to the trade war escalation? Traders may consider shorting Bitcoin and Ethereum, given the bearish technical indicators and increased trading volumes. Additionally, monitoring AI-related tokens for potential buying opportunities during dips could be beneficial, as the sector's long-term growth prospects remain strong despite short-term volatility.
How does the trade war impact the cryptocurrency market? The trade war's escalation introduces uncertainty into the global economy, affecting investor sentiment and leading to increased volatility in cryptocurrency prices. This can result in significant price movements and trading volume surges as investors react to the news.
What are the key technical indicators to watch for Bitcoin and Ethereum? For Bitcoin, traders should monitor the RSI and MACD for signs of bearish divergence and momentum. For Ethereum, similar indicators are crucial, along with on-chain metrics such as active addresses to gauge network activity and market sentiment.
Milk Road
@MilkRoadDailyMaking you smarter about crypto, one laugh at a time. Trusted by 330k+ daily readers.