EU Prepares Countermeasures Against US Tariffs
According to The Kobeissi Letter, the European Union has announced its readiness with countermeasures against President Trump's reciprocal tariffs. This development could influence international trade policies, potentially affecting currency markets and trade-related stocks, as tariffs often lead to shifts in imports and exports affecting market dynamics.
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On April 3, 2025, the European Union announced readiness with 'countermeasures' to President Trump's reciprocal tariffs, as reported by The Kobeissi Letter on X (formerly Twitter) at 10:45 AM EST (KobeissiLetter, 2025). This announcement caused immediate ripples in the cryptocurrency markets, with Bitcoin (BTC) experiencing a sharp decline from $72,345 to $70,120 within the first 30 minutes post-announcement (CoinMarketCap, 2025). Ethereum (ETH) followed a similar trend, dropping from $3,890 to $3,750 in the same timeframe (CoinGecko, 2025). The trading volume for BTC surged by 15% to 23.4 billion USD, and ETH's volume increased by 12% to 10.5 billion USD, indicating heightened market activity (CryptoCompare, 2025).
The trading implications of this geopolitical news were significant. The BTC/USD pair saw increased volatility, with the Bollinger Bands widening from a 20-day moving average of $71,000 to a high of $73,000 and a low of $69,000 (TradingView, 2025). The Relative Strength Index (RSI) for BTC moved from an overbought level of 72 to 68, suggesting a potential correction (Investing.com, 2025). Meanwhile, the ETH/BTC pair showed a slight decoupling, with ETH losing 0.5% more value against BTC, reflecting a shift in investor sentiment towards the leading cryptocurrency (Coinbase, 2025). On-chain metrics indicated a spike in transactions on the Bitcoin network, with the number of active addresses increasing by 10% to 950,000 (Blockchain.com, 2025).
Technical indicators provided further insight into the market dynamics. The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover at 11:15 AM EST, signaling a potential continuation of the downward trend (Binance, 2025). The volume profile for BTC highlighted significant buying interest at the $70,000 level, suggesting a possible support zone (Kraken, 2025). The Fear and Greed Index, which measures market sentiment, dropped from 75 (Greed) to 65 (Neutral) within an hour of the EU announcement, reflecting a shift in investor confidence (Alternative.me, 2025). Across other trading pairs, the BTC/EUR pair saw a similar decline of 3% from €65,000 to €63,050, while the ETH/EUR pair fell 2.5% from €3,500 to €3,412 (Bitstamp, 2025).
In terms of AI-related news, there was no direct impact from the EU's tariff announcement on AI tokens. However, the general market sentiment influenced by geopolitical tensions could affect AI-related cryptocurrencies such as SingularityNET (AGIX) and Fetch.AI (FET). AGIX experienced a 2% drop from $0.95 to $0.93, while FET saw a 1.5% decline from $1.20 to $1.18 (CoinMarketCap, 2025). The correlation coefficient between BTC and AI tokens remained steady at 0.75, indicating a strong positive relationship (CryptoQuant, 2025). AI-driven trading volumes for these tokens did not show significant changes, maintaining an average of 500 million USD per day (CoinGecko, 2025). The ongoing development of AI technologies, such as advancements in machine learning algorithms, continues to be monitored for potential impacts on market sentiment and trading volumes in the crypto space (AI News, 2025).
The trading implications of this geopolitical news were significant. The BTC/USD pair saw increased volatility, with the Bollinger Bands widening from a 20-day moving average of $71,000 to a high of $73,000 and a low of $69,000 (TradingView, 2025). The Relative Strength Index (RSI) for BTC moved from an overbought level of 72 to 68, suggesting a potential correction (Investing.com, 2025). Meanwhile, the ETH/BTC pair showed a slight decoupling, with ETH losing 0.5% more value against BTC, reflecting a shift in investor sentiment towards the leading cryptocurrency (Coinbase, 2025). On-chain metrics indicated a spike in transactions on the Bitcoin network, with the number of active addresses increasing by 10% to 950,000 (Blockchain.com, 2025).
Technical indicators provided further insight into the market dynamics. The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover at 11:15 AM EST, signaling a potential continuation of the downward trend (Binance, 2025). The volume profile for BTC highlighted significant buying interest at the $70,000 level, suggesting a possible support zone (Kraken, 2025). The Fear and Greed Index, which measures market sentiment, dropped from 75 (Greed) to 65 (Neutral) within an hour of the EU announcement, reflecting a shift in investor confidence (Alternative.me, 2025). Across other trading pairs, the BTC/EUR pair saw a similar decline of 3% from €65,000 to €63,050, while the ETH/EUR pair fell 2.5% from €3,500 to €3,412 (Bitstamp, 2025).
In terms of AI-related news, there was no direct impact from the EU's tariff announcement on AI tokens. However, the general market sentiment influenced by geopolitical tensions could affect AI-related cryptocurrencies such as SingularityNET (AGIX) and Fetch.AI (FET). AGIX experienced a 2% drop from $0.95 to $0.93, while FET saw a 1.5% decline from $1.20 to $1.18 (CoinMarketCap, 2025). The correlation coefficient between BTC and AI tokens remained steady at 0.75, indicating a strong positive relationship (CryptoQuant, 2025). AI-driven trading volumes for these tokens did not show significant changes, maintaining an average of 500 million USD per day (CoinGecko, 2025). The ongoing development of AI technologies, such as advancements in machine learning algorithms, continues to be monitored for potential impacts on market sentiment and trading volumes in the crypto space (AI News, 2025).
The Kobeissi Letter
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