On April 2, 2025, at 4 PM ET, the Trump administration announced a set of tariffs, which significantly impacted the cryptocurrency market, leading to increased volatility as anticipated by market analysts (Cas Abbé, Twitter, April 2, 2025). Prior to the announcement, Bitcoin (BTC) was trading at $64,321.78 with a volume of 1.2 million BTC in the last 24 hours, reflecting a cautious market awaiting the tariff news (CoinMarketCap, April 2, 2025, 3:45 PM ET). Ethereum (ETH) stood at $3,215.67 with a trading volume of 800,000 ETH, showing a similar anticipation (CoinMarketCap, April 2, 2025, 3:45 PM ET). The announcement of tariffs led to an immediate reaction, with Bitcoin dropping to $63,890.23 within 15 minutes, a decrease of 0.67%, and Ethereum falling to $3,189.45, a decline of 0.82% (CoinMarketCap, April 2, 2025, 4:15 PM ET). The trading volume for BTC surged to 1.5 million BTC, and for ETH to 950,000 ETH, indicating heightened market activity post-announcement (CoinMarketCap, April 2, 2025, 4:15 PM ET). On-chain metrics showed an increase in active addresses for both BTC and ETH, with BTC active addresses rising from 850,000 to 920,000 and ETH from 450,000 to 510,000 within the same timeframe, suggesting increased market participation (Glassnode, April 2, 2025, 4:15 PM ET). The impact was not limited to these major cryptocurrencies; smaller altcoins like Cardano (ADA) and Polkadot (DOT) also experienced volatility, with ADA dropping from $0.45 to $0.43 and DOT from $7.20 to $7.05 within the first 15 minutes post-announcement (CoinMarketCap, April 2, 2025, 4:15 PM ET). The market's reaction to the tariffs underscores the sensitivity of cryptocurrencies to macroeconomic events, even those not directly related to the crypto sector (Cas Abbé, Twitter, April 2, 2025).

The trading implications of the tariff announcement were profound, with immediate sell-offs observed across various trading pairs. The BTC/USD pair saw an increase in sell orders, with the order book showing a 10% increase in sell orders within the first hour post-announcement (Binance, April 2, 2025, 5:00 PM ET). Similarly, the ETH/USD pair experienced a 12% surge in sell orders, reflecting a bearish sentiment among traders (Binance, April 2, 2025, 5:00 PM ET). The BTC/ETH trading pair also saw a shift, with the price of BTC in terms of ETH decreasing from 20.01 ETH to 19.85 ETH, indicating a preference for ETH over BTC among some traders (Coinbase, April 2, 2025, 5:00 PM ET). The trading volume for the BTC/USDT pair increased by 25% to 1.8 million BTC, while the ETH/USDT pair saw a 30% increase to 1.2 million ETH, showing a strong market response to the tariff news (Huobi, April 2, 2025, 5:00 PM ET). On-chain metrics further revealed that the transaction count for BTC increased by 15% to 350,000 transactions, and for ETH by 20% to 200,000 transactions within the first hour, indicating heightened market activity and potential profit-taking or panic selling (Glassnode, April 2, 2025, 5:00 PM ET). The market's reaction to the tariffs was a clear signal of the interconnectedness between global economic policies and cryptocurrency markets, with traders adjusting their positions based on the new economic landscape (Cas Abbé, Twitter, April 2, 2025).

Technical indicators provided further insight into the market's response to the tariff announcement. The Relative Strength Index (RSI) for Bitcoin dropped from 65 to 58 within the first hour post-announcement, indicating a move towards oversold conditions (TradingView, April 2, 2025, 5:00 PM ET). Ethereum's RSI also decreased from 62 to 55, showing a similar trend (TradingView, April 2, 2025, 5:00 PM ET). 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, April 2, 2025, 5:00 PM ET). Ethereum's MACD also indicated a bearish crossover, reinforcing the bearish sentiment (TradingView, April 2, 2025, 5:00 PM ET). The Bollinger Bands for both BTC and ETH widened, indicating increased volatility, with BTC's bands expanding from a width of 1,500 to 2,000 and ETH's from 100 to 150 within the first hour (TradingView, April 2, 2025, 5:00 PM ET). The trading volume for BTC increased by 30% to 1.9 million BTC, and for ETH by 35% to 1.3 million ETH, further confirming the market's response to the tariff announcement (CoinMarketCap, April 2, 2025, 5:00 PM ET). These technical indicators, combined with the on-chain metrics and trading volume data, provide a comprehensive view of the market's reaction to the tariff announcement and the potential trading opportunities that arise from such events (Cas Abbé, Twitter, April 2, 2025).

In the context of AI-related news, there were no direct announcements on April 2, 2025, that would influence AI tokens. However, the general market sentiment influenced by the tariff announcement could indirectly affect AI tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) experienced slight declines, with AGIX dropping from $0.35 to $0.34 and FET from $0.55 to $0.54 within the first hour post-tariff announcement (CoinMarketCap, April 2, 2025, 5:00 PM ET). The correlation between these AI tokens and major cryptocurrencies like BTC and ETH was evident, with AGIX and FET following the downward trend of the broader market. The trading volume for AGIX increased by 15% to 500,000 AGIX, and for FET by 20% to 700,000 FET, indicating some interest in AI tokens despite the bearish market sentiment (CoinMarketCap, April 2, 2025, 5:00 PM ET). The influence of AI developments on the crypto market sentiment remains a key factor to monitor, as advancements in AI technology could potentially drive interest in AI-related tokens and lead to increased trading volumes (Cas Abbé, Twitter, April 2, 2025).