On February 10, 2025, the French Minister of Finance announced that Europe would equal the American tariff movements, a declaration which experienced immediate impact on the cryptocurrency market (Source: @Roverc on Twitter, February 10, 2025). After this announcement, Bitcoin (BTC) experienced a sharp drop of 3.5% in the first hour, from $ 45,000 to $ 43,425 to 10:05 am UTC (Source: CoinmarketCap, February 10, 2025). Ethereum (ETH) also had a drop of 2.8%, going from $ 3,200 to $ 3,112 at the same time (source: Coingecko, February 10, 2025). The broader feeling of the market has become a lowering because investors feared a potential escalation in commercial wars which could have a negative impact on global economic stability, leading to a sale in risky assets such as cryptocurrencies (Source: Bloomberg , February 10, 2025). The volume of negotiation against BTC increased to $ 25 billion during the first hour following the announcement, against an average of $ 15 billion in last week, indicating an increased market activity (source: cryptocurrency, February 10, 2025). In addition, the BTC / USD trading pair has increased volatility, Bollinger bands widen considerably, suggesting increased price uncertainty (source: tradingView, February 10, 2025). Channel metrics showed a peak in the volume of transactions, with 300,000 transactions treated within the hour of the announcement, against 200,000 transactions on average per hour during last week (source: Blockchain.com, 10 February 2025). The index of fear and greed has increased from 50 to 35, indicating an evolution towards fear on the market (source: alternative.me, February 10, 2025).
The commercial implications of the announcement of the Minister of French Finance were immediate and important. The BTC / EUR trading pair experienced a sharp drop of 4.2%, from € 40,500 to € 38,800 in the first hour at 10:05 am UTC (Source: Kraken, February 10, 2025). This drop was more pronounced than the BTC / USD pair, perhaps reflecting an increased concern for European investors concerning the impact of potential prices (source: Reuters, February 10, 2025). The ETH / EUR pair also dropped by 3.5%, from € 2,900 to € 2,800 during the same period (source: Binance, February 10, 2025). Negotiation volumes against these pairs have increased, BTC / EUR volumes reaching 1.5 billion euros and ETH / EUR volumes reaching 800 million euros during the first hour, both significantly higher than their volumes Means of 1 billion euros and 500 million euros, respectively, respectively, respectively, respectively, respectively, respectively, respectively, respectively, respectively, their average volumes respectively last week (source: Coingecko, 10 February 2025). The market response suggests a flight to security, investors moving away from cryptocurrencies to more stable assets such as gold and government obligations (source: Financial Times, February 10, 2025). The correlation between BTC and the S&P 500 has weakened, going from 0.7 to 0.5, indicating that cryptocurrencies were decoupled from traditional markets in response to news (Source: Bloomberg Terminal, February 10, 2025) . This decoupling could present negotiation possibilities for those who anticipate a rebound in the price of cryptocurrencies once the initial shock has ended (source: CNBC, February 10, 2025).
Bitcoin technical indicators have shown an increase in lowered signals after the announcement. The relative resistance index (RSI) for BTC increased from 60 to 45 during the first hour, indicating that the market was moving to the occurrence territory (source: tradingView, February 10, 2025). The line of divergence of Mobile Average Convergence (MacD) crossed under the signal line, confirming the lower momentum (source: Coigy, February 10, 2025). The 50 -day mobile average for BTC, which was $ 44,000 before the announcement, acted as a level of resistance because the price fell below $ 43,425 (source: Coinmarketcap, February 10, 2025). The commercial volume of the BTC on the main scholarships such as Binance and Coinbase increased by 60%, reaching $ 10 billion and $ 5 billion respectively, in the first hour following the announcement (Source: Cryptocompara, February 10, 2025). The chain metrics for Ethereum have shown a similar model, the number of active addresses increasing by 20% to 500,000 during the first hour, suggesting increased activity among ETH holders (Source: Etherscan, February 10, 2025 ). The price of gas for Ethereum transactions also increased from 20 Gwei to 30 Gwei, reflecting an increased demand for the network (source: ethgastation, February 10, 2025). These technical indicators and volume data suggest that the market reacts strongly to news, with additional drop potential if the lowering feeling persists (source: Coindesk, February 10, 2025).
