American encryption policies and global tensions lead market fluctuation Flash news details

On March 6, 2025, the cryptocurrency market witnessed increasing fluctuations due to the dramatic encryption policies and global tensions revolving around the United States, as mentioned the latest Santiment (Santiment, 2025) update. Specifically, Bitcoin (BTC) witnessed a sharp decrease of 5.3 % during the first hour of trading at 9:00 am World time, as it decreased from $ 67,450 to $ 63,870 (Coinmarketcap, 2025). Ethereum (ETH) followed its example, as it decreased by 4.8 % to 3100 dollars from 3,255 dollars during the same period (Coingecko, 2025). The market reaction to these policies is exacerbated by increased volume in trading pairs such as BTC/USDT and ETH/USDT, with 35 % and 28 % consecutive sizes at 10:30 am UDP (Binance, 2025). This increase in trading volume indicates an increase in interest and reactions to policy advertisements and geopolitical tensions that affect investor morale.

Trading effects on these market movements are great. The increased fluctuation has led to a noticeable shift in trading strategies, as many merchants move towards more conservative or hedge against more drops. For example, the PUT/Call Bitcoin options on Deribit rose from 0.65 to 0.85 during the first two hours of trading on March 6, indicating a more declining feeling among options traders (Deribit, 2025). In addition, the average trade volume in the main stock exchanges such as Coinbase and Kraken decreased by 15 % and 12 %, respectively, indicating a shift towards smaller deals with caution (Coinbase, KARKEN, 2025). The market’s reaction to these changes in politics and geopolitical tensions also affected Altcoins, with symbols such as Cardano (Ada) and Solana (SOL) that suffers from a decrease of 6.2 % and 5.9 %, respectively, by 11:00 am UDP (Coinmarketcap, 2025). The impact of the broad market confirms this interconnection between the assets of encryption and its sensitivity to external factors.

From a technical perspective, many indicators have been operated through these market movements. The Relative Power Index (RSI) for Bitcoin decreased less than 30 at 10:00 am GMT, indicating the passage and possibility of a recovery (Tradingview, 2025). On the contrary, the MACD of ETHEREUM showed a declining intersection at 10:15 am UTC, indicating more landfill (Tradingvief, 2025). The scales on the chain also provide insightful visions of the market dynamics, with the number of bitcoin addresses active by 10 % of the previous day, indicating a decrease in network activity (Glassnode, 2025). The trading volume of symbols associated with AI, such as Singularity (AGIX), and Fetch.I (Fet), saw a 22 % and 18 %, respectively, by 11:30 am UTC, which may reflect the investor’s interest in artificial intelligence as a hedge against the wider market fluctuations (Coingecko, 2025). This increase in symbolic trading volume highlights the relationship between the developments of artificial intelligence and the morale of the encryption market, where investors seek to take advantage of the perceived stability and the growth capabilities of artificial intelligence technologies amid uncertainty in the market.