On April 17, 2025, Gordon (@AltcoinGordon) highlighted a significant shift in the US money supply through a tweet, which included a chart showing a notable decrease in money supply from $21.5 trillion in January 2025 to $20.8 trillion by April 17, 2025 (Source: @AltcoinGordon, April 17, 2025). This reduction in money supply has immediate implications for the cryptocurrency market, particularly affecting assets like Bitcoin (BTC), Ethereum (ETH), and AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET). As of 10:00 AM UTC on April 17, 2025, Bitcoin was trading at $65,230, marking a 2.5% decrease from the previous day's close of $66,900 (Source: CoinMarketCap, April 17, 2025). Ethereum, on the other hand, experienced a 1.8% decline, trading at $3,200 from $3,256 (Source: CoinMarketCap, April 17, 2025). The AI token SingularityNET saw a steeper fall, dropping 3.5% to $0.50 from $0.52 (Source: CoinGecko, April 17, 2025), while Fetch.ai decreased by 2.9% to $0.30 from $0.31 (Source: CoinGecko, April 17, 2025). These price movements reflect the broader market's reaction to the contraction in money supply, as investors adjust their portfolios in anticipation of potential economic tightening.

The trading implications of this money supply contraction are multifaceted. As of 11:00 AM UTC on April 17, 2025, trading volumes for Bitcoin surged to $35 billion, up from $30 billion the previous day, indicating heightened market activity and potential volatility (Source: CoinMarketCap, April 17, 2025). Ethereum's trading volume also increased, reaching $15 billion from $13 billion (Source: CoinMarketCap, April 17, 2025). For AI tokens, SingularityNET's trading volume rose to $100 million from $80 million, and Fetch.ai's volume increased to $75 million from $60 million (Source: CoinGecko, April 17, 2025). These volume spikes suggest that traders are actively adjusting their positions in response to the macroeconomic news. Additionally, the BTC/USD pair saw increased volatility, with the Bollinger Bands widening to a 20-day moving average of $65,000, indicating potential for significant price swings (Source: TradingView, April 17, 2025). The ETH/BTC pair also showed increased volatility, with the 14-day Relative Strength Index (RSI) moving from 55 to 60, suggesting a potential overbought condition (Source: TradingView, April 17, 2025). These indicators point to a market that is reacting to the money supply news with increased trading activity and potential for further price movements.

Technical indicators and volume data further illuminate the market's response to the money supply contraction. As of 12:00 PM UTC on April 17, 2025, Bitcoin's 50-day moving average crossed below its 200-day moving average, signaling a bearish 'death cross' and potentially indicating further downward pressure on prices (Source: TradingView, April 17, 2025). Ethereum's 50-day moving average was also approaching its 200-day moving average, suggesting a similar bearish trend (Source: TradingView, April 17, 2025). For AI tokens, SingularityNET's on-chain metrics showed a significant increase in active addresses, rising from 1,200 to 1,500 over the past 24 hours, indicating heightened interest and potential buying pressure (Source: CoinGecko, April 17, 2025). Fetch.ai's on-chain data revealed a similar trend, with active addresses increasing from 800 to 1,000 (Source: CoinGecko, April 17, 2025). These on-chain metrics, combined with the technical indicators, suggest that while the broader market may be bearish, there could be pockets of opportunity within the AI token sector. The correlation between AI developments and crypto market sentiment remains strong, with AI-driven trading volumes showing a 10% increase across major exchanges since the money supply news broke (Source: CryptoQuant, April 17, 2025). This indicates that AI-related tokens may offer unique trading opportunities amidst the broader market downturn.

What is the impact of US money supply contraction on cryptocurrency prices? The contraction in US money supply, as highlighted by Gordon (@AltcoinGordon) on April 17, 2025, has led to a decrease in cryptocurrency prices, with Bitcoin dropping 2.5% to $65,230 and Ethereum declining 1.8% to $3,200. AI tokens like SingularityNET and Fetch.ai also experienced declines of 3.5% and 2.9%, respectively. How does trading volume respond to macroeconomic news? Trading volumes for Bitcoin and Ethereum surged to $35 billion and $15 billion, respectively, indicating heightened market activity and potential volatility in response to the money supply news. AI tokens also saw increased trading volumes, with SingularityNET reaching $100 million and Fetch.ai hitting $75 million. What technical indicators suggest about the market's direction? Technical indicators such as the 'death cross' for Bitcoin and the approaching 'death cross' for Ethereum suggest a bearish market trend. However, on-chain metrics for AI tokens like SingularityNET and Fetch.ai show increased active addresses, indicating potential buying pressure and trading opportunities within this sector.