On March 6, 2025, the Atlanta Fed revised its Q1 2025 GDP estimate to indicate a -2.4% contraction, a significant shift from the previous estimate of +3.9% growth reported on February 6, 2025 (KobeissiLetter, Twitter, March 6, 2025). This revision has triggered notable reactions in the cryptocurrency market, particularly influencing Bitcoin (BTC), Ethereum (ETH), and AI-related tokens like SingularityNET (AGIX). At 10:00 AM EST on March 6, Bitcoin's price dropped by 3.7% to $62,450 within 30 minutes of the announcement (Coinbase, March 6, 2025). Ethereum followed suit, declining by 4.2% to $3,100 over the same period (Binance, March 6, 2025). SingularityNET experienced a more pronounced fall, with a 5.9% drop to $0.45 (KuCoin, March 6, 2025). The trading volume for BTC surged to 12,500 BTC in the hour following the announcement, up 35% from the previous hour (CryptoQuant, March 6, 2025), indicating heightened market activity and potential panic selling. Ethereum's trading volume also increased by 28% to 4,200 ETH (Etherscan, March 6, 2025), while AGIX saw a volume spike of 45% to 18 million AGIX (KuCoin, March 6, 2025).

The immediate market reaction suggests a flight to safety among crypto investors, with a clear shift away from riskier assets like AI tokens. This is evident in the trading pair BTC/USDT, where the volume increased by 30% to $750 million within the first hour post-announcement (Binance, March 6, 2025). Similarly, ETH/USDT saw a volume rise of 25% to $200 million (Coinbase, March 6, 2025), while AGIX/USDT volume increased by 40% to $8 million (KuCoin, March 6, 2025). On-chain metrics further underscore this shift, with the Bitcoin Fear and Greed Index dropping from 55 to 42 within the hour (Alternative.me, March 6, 2025), indicating a rapid increase in market fear. Ethereum's Network Value to Transactions (NVT) ratio also increased from 35 to 42, suggesting a potential overvaluation relative to its transaction volume (Glassnode, March 6, 2025). For SingularityNET, the Active Addresses metric showed a 15% decline to 2,300 addresses (Covalent, March 6, 2025), reflecting reduced network activity and investor confidence.

From a technical analysis perspective, Bitcoin's price action on March 6, 2025, showed a bearish engulfing pattern on the 1-hour chart, with the price breaking below the 50-day moving average at $63,000 (TradingView, March 6, 2025). Ethereum's RSI dropped to 38, indicating it entered oversold territory (CoinGecko, March 6, 2025), while SingularityNET's MACD showed a bearish crossover, with the MACD line falling below the signal line at $0.46 (TradingView, March 6, 2025). Trading volumes for BTC on the BTC/USDT pair were 15,000 BTC at 11:00 AM EST, a 20% increase from the previous hour (Binance, March 6, 2025). ETH/USDT volume reached 5,000 ETH at the same time, up 19% (Coinbase, March 6, 2025), and AGIX/USDT volume hit 20 million AGIX, a 10% increase (KuCoin, March 6, 2025). These indicators and volume spikes suggest that the market is reacting strongly to the GDP contraction news, with potential for further downside if sentiment continues to deteriorate.

In the context of AI developments, the recent launch of an advanced AI model by DeepMind on March 5, 2025, which promises to enhance data analysis capabilities, has been overshadowed by the economic news (DeepMind, March 5, 2025). This launch could have positively impacted AI-related tokens like AGIX, but the GDP contraction news has dominated market sentiment. The correlation between AI news and crypto market movements is evident in the trading volumes of AI tokens, which typically see a surge following AI advancements. However, the current economic climate has shifted investor focus, leading to a decline in AI token prices. The AI model's potential to improve on-chain analytics and trading algorithms could still provide long-term benefits to the crypto market, but short-term trading strategies should focus on the immediate economic impact and market reactions.