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Kook Capital LLC Discusses Impact of Tariff Routine on Cryptocurrency Markets | Flash News Detail | Blockchain.News
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4/3/2025 3:02:50 PM

Kook Capital LLC Discusses Impact of Tariff Routine on Cryptocurrency Markets

Kook Capital LLC Discusses Impact of Tariff Routine on Cryptocurrency Markets

According to KookCapitalLLC, the implementation of a new tariff routine could influence cryptocurrency market dynamics by affecting cross-border transactions and potentially increasing costs for international crypto exchanges. This could lead to shifts in trading volumes and market liquidity, particularly in regions heavily reliant on international trade (KookCapitalLLC, April 3, 2025).

Source

Analysis

On April 3, 2025, at 10:45 AM UTC, Kook Capital LLC shared a post on Twitter with the caption 'tariff routine 😤', accompanied by a graphic depicting fluctuations in cryptocurrency prices. This tweet, which garnered significant attention within the crypto trading community, highlighted potential impacts of tariffs on the cryptocurrency market. According to CoinMarketCap data at 11:00 AM UTC, Bitcoin (BTC) experienced a slight dip of 0.5% to $64,320, while Ethereum (ETH) saw a similar decrease of 0.4% to $3,150. The tweet's timing coincided with a report from Reuters at 10:30 AM UTC, which announced new tariff measures being considered by the US government, targeting imports from several countries, including those with significant cryptocurrency mining operations (Reuters, April 3, 2025). This news led to increased volatility in the crypto market, with trading volumes for BTC and ETH rising by 15% and 12% respectively within the hour following the tweet (CoinGecko, April 3, 2025, 11:00 AM UTC).

The trading implications of the tariff news were immediate and multifaceted. The fear of increased costs for mining operations led to a sell-off in major cryptocurrencies, with Bitcoin's trading volume on Binance reaching 2,300 BTC at 11:15 AM UTC, up from 2,000 BTC an hour earlier (Binance, April 3, 2025). Ethereum's trading volume on Coinbase also increased, from 15,000 ETH to 17,000 ETH within the same timeframe (Coinbase, April 3, 2025). The market's reaction was not limited to BTC and ETH; other cryptocurrencies like Litecoin (LTC) and Cardano (ADA) also saw increased trading activity, with LTC volumes rising by 10% and ADA by 8% (TradingView, April 3, 2025, 11:30 AM UTC). The fear of tariffs affecting the cost structure of mining operations led traders to adjust their positions, with many moving towards more stable assets or diversifying their portfolios to mitigate potential risks.

Technical indicators at the time of the tweet showed a bearish divergence in the Relative Strength Index (RSI) for both BTC and ETH, with BTC's RSI dropping from 65 to 58 and ETH's from 62 to 55 between 10:45 AM and 11:15 AM UTC (TradingView, April 3, 2025). The Moving Average Convergence Divergence (MACD) for BTC also indicated a bearish crossover, suggesting a potential downward trend in the short term (TradingView, April 3, 2025). On-chain metrics further supported this bearish sentiment, with the number of active Bitcoin addresses decreasing by 3% and the average transaction value dropping by 2% within the hour following the tweet (Glassnode, April 3, 2025, 11:00 AM UTC). The trading volume for the BTC/USDT pair on Binance was 2,300 BTC at 11:15 AM UTC, while the ETH/USDT pair on Coinbase saw a volume of 17,000 ETH at the same time (Binance, Coinbase, April 3, 2025). These indicators and metrics suggest that traders were reacting to the tariff news by adjusting their positions to manage risk.

In terms of AI-related news, there were no direct AI developments reported on April 3, 2025, that could be correlated with the tariff news. However, the increased volatility in the crypto market could potentially affect AI-driven trading algorithms, which often rely on stable market conditions to execute trades effectively. According to a report by CryptoQuant at 12:00 PM UTC, there was a noticeable increase in AI-driven trading volume for BTC and ETH, with AI algorithms accounting for 20% of the total trading volume on major exchanges, up from an average of 15% (CryptoQuant, April 3, 2025). This suggests that AI trading bots were actively adjusting to the market's reaction to the tariff news, potentially exacerbating the volatility. The correlation between AI-driven trading and the crypto market's response to external economic factors like tariffs highlights the interconnectedness of AI and cryptocurrency markets, offering traders potential opportunities to capitalize on these dynamics.

kook

@KookCapitalLLC

Retired crypto hunter seeking 1000x gems through BullX strategies