Investment restrictions in China affect the cryptocurrency market in the United States Flash news details

On April 2, 2025, China announced a new policy that restricts its companies from investing in the United States, indicating a great escalation in the ongoing trade war between the two countries (Source: Crypto Rover, X Post, April 2, 2025). This development has led to immediate reactions in the market through various financial tools, including encrypted currencies. At 10:00 am World time on April 2, 2025, Bitcoin (BTC) witnessed a sharp decrease by 4.5 %, with a decrease from $ 68,000 to $ 64,980, according to Coinmarketca. Ethereum (ETH) followed its example, as it decreased by 3.8 % to $ 3,200 from $ 3,325 during the same time frame (Source: CoinMarketcap, 2 April 2025). The broader encryption market also witnessed a decrease, as the total market value decreased by 4.2 % to $ 2.3 trillion (Source: Coinmarketcap, April 2, 2025). Trading volumes increased via the main stock exchanges, as Binance reported a 30 % increase in the trading volume of BTC/USDT’s pair within the first hour of the announcement, reaching a volume of $ 1.5 billion (Source: Binance, April 2, 2025). Likewise, in Coinbase, the ETH/USD pair witnessed a 25 % increase in size, reaching $ 800 million (Source: Coinbase, April 2, 2025). These movements emphasize market sensitivity to geopolitical events and the possibility of great fluctuations in response to such news.

Trading effects of this multi -faceted geopolitical development. Initially, the sale of major cryptocurrencies such as BTC and ETH increased fluctuations, while expanding the Bollinger Bands range of BTC, indicating an increase in fluctuations from 10:00 am to 12:00 pm UTC on April 2, 2025 (Source: Tradingvief, April 2, 2025). This volatility created both risks and opportunities for merchants. For example, the BTC/USDT pair on Binance witnessed a temporary recovery to $ 66,000 at 11:30 am UTC before declining to $ 64,980 by 12:00 pm UTC, providing short -term trading opportunities (Source: Binance, 2 April 2025). In addition, fear and uncertainty led to a rise in the Crypto Fear & Greed index, which jumped from 52 to 68 within two hours of the advertisement (Source: Alternative.me, April 2, 2025). This transformation in the market morale may affect trading strategies, as some traders may look forward to taking advantage of the fear -based sales while others may adopt a more cautious approach. Increased trading volume via stock exchanges also indicates an increase in market activity, indicating that traders respond actively to news and control their positions accordingly.

Technical indicators increase the market reaction to the escalation of the trade war. The RSI ROC index decreased from 65 to 50 between 10:00 am and 12:00 pm UTC on April 2, 2025, indicating a move towards the sale area (Source: TradingView, April 2, 2025). This can indicate potential purchase opportunities for merchants expecting a recovery. ETH also showed a declining intersection during the same period, with the MACD line crossing the signal line at 11:00 am World time, indicating a declining momentum (Source: TradingView, April 2, 2025). The scales on the chain provide additional visions, with the increased value of the network to the NVT (NVT) transactions from 45 to 52, indicating a possible excessive estimate with regard to the volume of treatment (Source: Glassnode, April 2, 2025). This scale, along with the noticeable increase in trading sizes, confirms the increasing activity of the market and the possibility of additional price movements. In general, these indicators and standards for merchants provide a comprehensive vision for the market response to geopolitical news and can direct their commercial decisions in the short term.

Regarding the developments of artificial intelligence, this escalation of the trade war did not directly affect the symbols associated with AI, such as Singularity (AGIX) or Fetch.AI (Fet) in terms of specified artificial intelligence news. However, the larger market contraction also affected these symbols, as AGIX decreased by 5.2 % to $ 0.35 from $ 0.37 and Fet by 4.9 % to $ 0.80 from $ 0.84 at 10:00 am UAE on April 2, 2025 (Source: Coinmarkcap, 2, 2025). The relationship between the symbols associated with the prosecution and the main encrypted currencies such as BTC and ETH is still strong, with the Person’s connection coefficient 0.75 between Agix and BTC over the past 24 hours (Source: Cryptoquant, April 2, 2025). This indicates that although news of the spontaneous organization may not directly affect the movements, the comprehensive morale in the market led by trade war has greatly affects the distinctive symbols of the prosecution. Traders looking for opportunities in the Ai-Crypto Crosso may closely monitor these links, because any positive developments of artificial intelligence may lead to a faster recovery in artificial intelligence symbols compared to the broader market. In addition, the AI’s trading algorithms may adjust their strategies in response to the increase in fluctuations, which may lead to transformations in the trading volumes of AI’s symbols.