The announcement of confirmation of commercial tariffs issued by US President Donald Trump on April 2 sparked a set of reactions from cryptocurrency investors, who expected the driving market turmoil.
According to my weekly a report Through the Cryptoquant platform on the series, the Crypto Market witnessed a sales process before and during the announcement of the advertisement. Since then, the homogeneous conditions have continued.
The reaction of the encryption investors to the Trump tariff
With the press conference approaching, investors stood to transfer BTC to the exchange of encryption. The rush was so high that one Bitcoin bloc recorded up to 2500 BTC. It also witnessed the largest American coding exchange, Coinbase, a significant increase in BTC deposits, especially from adult holders.
The rise in exchange deposits was not alien to BTC; Investors also rushed to the ETH and XRP transfer to trading platforms. ETH deposits for exchanges rose to about 80,000 ETH, while XRP transfers rose to 130 million symbols – far from 10 million transactions per hour that were seen the day before.
Cryptoquant said these large exchange flows indicate that investors were putting themselves to sell their assets due to the increasing economic uncertainty.
During the press conference, BTC, ETH and XRP decreased by 6.2 %, 7 % and 5 %, respectively, erasing the gains they got on that day. This is a clear indication that investors sold their property.
BTC demand decreased
Moreover, the demand for BTC and ETH decreased in the permanent futures market, where traders closed their positions to achieve profits during the conference. The total open interest of BTC decreased from 334,000 BTC to 304,000 BTC, while ETH decreased by 100,000 ETH. Cryptoquant has revealed that the decrease in open interest during low prices indicates that merchants come out of long positions due to liquidation or a further expectation.
After the conference, the demand for BTC was reduced from American investors. This was seen in the Coinbase, which decreased from 0.04 % before announcing the confirmation of definitions to 0.03 % after Trump’s speech.
“In order to high the price of bitcoin, it needs a relatively higher demand than American investors,” said Cryptoquant.
Meanwhile, the bull degree index still indicates that BTC is in the bear market. For weeks, the scale was twenty years old, its lowest level since January 2023, and the signals of the signals seen in the previous stages of the bear.
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