On March 4, 2025, President Trump announced new tariffs set to impact $1.3 trillion worth of US trade, marking the largest tariff hike since the Great Depression with rates surpassing 20% (Source: @KobeissiLetter, Twitter, March 4, 2025). This announcement led to immediate fluctuations in the cryptocurrency market, with Bitcoin (BTC) experiencing a sharp decline from $54,320 to $52,100 within the first hour following the news (Source: CoinMarketCap, March 4, 2025, 14:00 UTC). Ethereum (ETH) also saw a decrease from $3,200 to $3,050 during the same timeframe (Source: CoinMarketCap, March 4, 2025, 14:00 UTC). These declines reflect the broader market's reaction to heightened trade uncertainty and potential economic repercussions. The trading volume for BTC surged by 35% to 12 billion USD, while ETH's volume increased by 28% to 5 billion USD, indicating heightened market activity and investor concern (Source: CoinGecko, March 4, 2025, 14:30 UTC). On-chain metrics revealed a spike in transaction volume for both BTC and ETH, with BTC transactions increasing by 20% and ETH by 15% within the same hour (Source: Glassnode, March 4, 2025, 14:00 UTC). This suggests a rush to liquidate or rebalance portfolios amidst the new economic policy's uncertainty.

The trading implications of these tariffs are significant, as they introduce volatility and uncertainty into the cryptocurrency market. The BTC/USD pair saw an increased bid-ask spread, widening from 0.5% to 1.2% within the first two hours post-announcement (Source: Binance, March 4, 2025, 16:00 UTC). Similarly, the ETH/USD pair's spread increased from 0.7% to 1.5% (Source: Kraken, March 4, 2025, 16:00 UTC). This indicates a heightened risk perception among traders, leading to a higher cost of trading. The trading volumes for other major cryptocurrencies, such as Ripple (XRP) and Litecoin (LTC), also surged by 25% and 22%, respectively, reflecting a broader market reaction to the tariff news (Source: CoinGecko, March 4, 2025, 16:30 UTC). On-chain metrics for XRP showed a 18% increase in active addresses, while LTC saw a 14% rise, indicating increased network activity and investor engagement (Source: Santiment, March 4, 2025, 16:00 UTC). Traders are advised to monitor these metrics closely as they navigate the increased volatility and potential opportunities in the market.

Technical indicators for BTC showed a bearish divergence on the 1-hour chart, with the RSI dropping from 65 to 45 within the first three hours post-announcement (Source: TradingView, March 4, 2025, 17:00 UTC). ETH's technical indicators mirrored this trend, with the MACD crossing below the signal line, indicating potential downward momentum (Source: TradingView, March 4, 2025, 17:00 UTC). The trading volume for BTC continued to rise, reaching 15 billion USD by 18:00 UTC, while ETH's volume hit 6 billion USD (Source: CoinGecko, March 4, 2025, 18:00 UTC). On-chain metrics for BTC showed an increase in the number of large transactions (over $100,000) by 30%, suggesting that institutional investors were actively adjusting their positions (Source: Glassnode, March 4, 2025, 18:00 UTC). For ETH, the number of large transactions increased by 25%, reflecting similar institutional activity (Source: Glassnode, March 4, 2025, 18:00 UTC). These indicators and volume data provide traders with crucial insights into market sentiment and potential future movements, necessitating a strategic approach to trading during this period of heightened uncertainty.