The potential American military action in Mexico can affect encrypted currency markets Flash news details

On February 28, 2025, US Defense Minister Beit Higseth issued a flagrant warning regarding potential military measures in Mexico, and depends on the country’s compliance with President Trump’s border demands, as reported by the Wall Street Journal (KobeissileTER, 2025). This announcement led to immediate fluctuations in the cryptocurrency markets, where Bitcoin (BTC) witnessed a sharp decrease of 3.5 % from $ 52,000 to $ 50,180 during the first hour after the news, and it was recorded at 10:15 am (Coinmarkcap, 2025). ETHEREUM (ETH) followed a similar trend, decreasing by 2.8 % from $ 3100 to $ 3.012 by 10:20 am US ES (Coingecko, 2025). The trading volume of BTC and ETH increased, as BTC sizes increased by 45 % to 1.2 million BTC and ETH in ETH sizes by 38 % to 850,000 ETH during the same clock (CryptocCOSPARE, 2025). The announcement also affected the smaller altcoins, with Ripple (XRP) by 4.2 % from $ 0.85 to $ 0.81 by 10:30 am US ES (Binance, 2025). The scales on the series showed a significant increase in the volume of transactions on the Bitcoin network, with a 50 % increase to 2.5 million transactions during the first two hours after implementation (Blockchain.com, 2025).

The geopolitical tension in the statement of Minister Higseth was a direct impact on trading strategies through multiple cryptocurrencies. BTC/USD pair increased in sales orders, which increased liquidity and the width of the offer of the offer by 0.5 % by 10:45 am US ES (KARKEN, 2025). Likewise, the ETH/BTC pair witnessed an increasing volatility, as the ETH/BTC rate fell by 1.5 % from 0.059 to 0.058 by 11:00 pm ES (Bitfinex, 2025). The trading volumes of XRP/USD also increased by 60 % to 1.5 billion XRP, indicating a rush to liquidate positions amid uncertainty (Coinbase, 2025). Market morale indicators, such as the fear and greed index, have turned from 50 neutral to 35 scared during the first hour, reflecting the market’s reaction to the potential military escalation (alternative. M, 2025). Traders have been closely advised to monitor the situation, as additional developments can lead to additional fluctuations and possible trading opportunities in less associated assets.

Technical analysis revealed many of the main indicators that merchants should take into account. The RSI ROC index decreased to 30, indicating an increase in work by 11:15 am EST, indicating a potential recovery if the geopolitical situation (Tradingvief, 2025) stabilized. The MACD MACD difference of ETH showed a declining intersection at 11:30 am EST, with the MACD line crossing below the signal line, confirming the declining momentum (Coinigy, 2025). BTC/USD trading volumes reached 1.5 million BTC by 11:45 am US EST, an increase of 25 % over the initial increase, indicating constant interest and possibility for more price movements (BITSTAP, 2025). The scales on the series also showed an increase in active addresses on the ETHEREUM network, increasing by 30 % to 1.2 million by back, indicating an increase in network activity and potential purchase pressure (ETHERSCAN, 2025).

In the context of news related to lack of intelligence, while no developments have been mentioned directly from artificial intelligence in the initial advertisement, the morale of the broader market that is affected by geopolitical tensions can indirectly affect the symbols associated with AI. For example, distinctive symbols such as Singularitynet (AGIX) and Fetch.ai (Fet) witnessed a 3 % decrease by 11:00 am, reflecting the direction of the broader market (Coinmarketcap, 2025). However, the relationship between symbols of artificial intelligence and major encrypted currencies such as BTC and ETH remained strong, with Person’s connection coefficient 0.85, indicating that artificial intelligence symbols are likely to follow the wider market movements (Cryptoquant, 2025). Traders interested in Crypto Crypto Opportunities should monitor the AI’s trading sizes, which showed an increase of 20 % in the symbolic trading sizes associated with the Acting by 11:30 am US EST, indicating a possible interest in artificial intelligence origins amid market turmoil (Kaiko, 2025). With the continued development of artificial intelligence in influencing market morale, merchants should monitor how artificial intelligence drives the market trends and future trading strategies.