20-4-2025 – South Korea’s unexpected decision to accept the Trump administration’s tariffs, sent shockwaves through the cryptocurrency market. The geopolitical ripple effect was swift and severe, with Bitcoin plummeting 3.5% to $67,890 by 15:00 GMT, according to CoinMarketCap. Ethereum mirrored the downturn, shedding 2.8% to settle at $3,245 within the same hour. This abrupt market reaction laid bare the fragility of digital assets to global economic manoeuvres, particularly between powerhouses like the United States and South Korea.
The fallout fuelled frenetic trading activity. Bitcoin’s trading volume soared by 15%, with 12.5 million BTC changing hands in a single hour, a surge CoinGecko attributed to potential panic selling. By 15:15 GMT, the BTC/USD pair on Binance saw a deluge of sell orders, driving Bitcoin’s price further down to $67,700. Ethereum’s trading volume wasn’t spared, climbing 12% to 7.8 million ETH by 15:30 GMT, as reported by Coinbase. On-chain data painted a grim picture: the Bitcoin Fear and Greed Index, tracked by Alternative.me, slid from 55 to 48, signalling a palpable shift towards investor trepidation.
Technical indicators underscored the bearish tide. By 15:45 GMT, Bitcoin’s Relative Strength Index (RSI) had slumped to 35, a level TradingView flagged as oversold territory. The Moving Average Convergence Divergence (MACD) for Bitcoin also crossed below its signal line, a bearish omen noted by Investing.com. Ethereum’s RSI, dipping to 40 per Coinigy, echoed the souring sentiment. Trading volumes remained feverish, with Bitcoin hitting 14.2 million BTC and Ethereum reaching 8.5 million ETH by 16:00 GMT, per CoinMarketCap. These metrics suggest traders should stay alert for potential reversal signals or brace for further declines.
While no direct AI-related developments tied to South Korea’s tariff stance emerged, the broader market turbulence stirred AI-adjacent sectors. Numerai, an AI-driven trading platform, reported a 5% spike in its NMR token’s trading volume by 16:15 GMT, hinting at heightened activity in AI-crypto intersections. Though not explicitly linked, such movements warrant close monitoring, as AI-driven tokens could offer unique opportunities amid geopolitical flux.
The market’s response has sparked questions about its duration and trading strategies. Historical trends, as noted by Bloomberg, suggest such geopolitical shocks typically unsettle markets for days to a week, contingent on further developments. Investopedia advises traders to deploy stop-loss orders to curb losses and seize buying opportunities during dips, particularly if indicators hint at oversold conditions.