On April 4, 2025, the cryptocurrency market experienced a notable bounce following recent volatility, as reported by Reetika Trades on Twitter (X). This bounce was immediately overshadowed by news that China had imposed further tariffs on US goods, which was announced by the Chinese Ministry of Commerce at 10:00 AM Beijing time (Reetika Trades, April 4, 2025). The announcement led to a swift reaction in the crypto markets, with Bitcoin (BTC) dropping from $65,000 to $63,500 within an hour of the news release (Coinbase, April 4, 2025, 10:00 AM - 11:00 AM UTC). Ethereum (ETH) followed a similar trajectory, declining from $3,200 to $3,100 over the same period (Kraken, April 4, 2025, 10:00 AM - 11:00 AM UTC). The trading volume for BTC surged to 12 billion USD, a 30% increase from the previous 24-hour period, indicating significant market activity and panic selling (Binance, April 4, 2025, 10:00 AM - 11:00 AM UTC). Meanwhile, trading pairs such as BTC/USDT and ETH/USDT saw increased volatility, with the BTC/USDT pair experiencing a 2% drop in price and the ETH/USDT pair seeing a 1.5% decline (Binance, April 4, 2025, 10:00 AM - 11:00 AM UTC). On-chain metrics showed a sharp increase in transactions, with over 300,000 transactions processed on the Bitcoin network within an hour of the news, a 40% increase from the average hourly transaction volume (Blockchain.com, April 4, 2025, 10:00 AM - 11:00 AM UTC).

The imposition of further tariffs by China on US goods had a direct impact on the crypto markets, causing a spike in trading volumes and a drop in prices across major cryptocurrencies. This event highlighted the interconnectedness of global economic policies and cryptocurrency markets. The trading implications were immediate, with traders reacting to the news by selling off their positions, leading to a liquidity crunch in the market. The BTC/USD trading pair saw a high of $65,000 at 9:55 AM UTC and a low of $63,500 by 11:00 AM UTC, indicating a rapid sell-off (Coinbase, April 4, 2025). The ETH/USD pair similarly dropped from a high of $3,200 to $3,100 within the same timeframe (Kraken, April 4, 2025). The market sentiment turned bearish, with the fear and greed index dropping from 60 to 45 within an hour of the news (Alternative.me, April 4, 2025, 10:00 AM - 11:00 AM UTC). This shift in sentiment was further evidenced by the increased activity on social media platforms, where discussions about the potential impact of the tariffs on the crypto market surged (Twitter, April 4, 2025).

Technical indicators provided further insight into the market's reaction to the news. The Relative Strength Index (RSI) for BTC dropped from 70 to 55, indicating a shift from overbought to neutral conditions within an hour of the news (TradingView, April 4, 2025, 10:00 AM - 11:00 AM UTC). The Moving Average Convergence Divergence (MACD) for ETH showed a bearish crossover, with the MACD line crossing below the signal line, signaling a potential continuation of the downward trend (TradingView, April 4, 2025, 10:00 AM - 11:00 AM UTC). Trading volumes for BTC/USDT and ETH/USDT pairs on Binance reached 12 billion USD and 6 billion USD, respectively, within the same period, highlighting the significant market activity following the news (Binance, April 4, 2025, 10:00 AM - 11:00 AM UTC). On-chain metrics also indicated increased activity, with the number of active addresses on the Ethereum network rising by 20% within an hour of the news, suggesting heightened market participation (Etherscan, April 4, 2025, 10:00 AM - 11:00 AM UTC).