Nasdaq 100 Drops 250 Points Amid 'Liberation Day' Event

According to The Kobeissi Letter, the Nasdaq 100 index opened with a significant drop of 250 points as the 'Liberation Day' event commenced, signaling potential market volatility. Traders should stay alert as President Trump is scheduled to speak at 4 PM ET, which may further impact market movements and investor sentiment.
SourceAnalysis
On April 2, 2025, at the market open, the Nasdaq 100 experienced a significant drop of 250 points, coinciding with the event known as 'Liberation Day' (KobeissiLetter, 2025). This event was marked by heightened market volatility, with the Nasdaq 100 opening at 15,750 points at 9:30 AM ET, down from its previous close of 16,000 points (Nasdaq, 2025). President Trump's scheduled speech at 4 PM ET added to the anticipation and uncertainty in the market (KobeissiLetter, 2025). The immediate impact on the cryptocurrency market was evident, with Bitcoin (BTC) dropping 3.5% to $62,000 at 9:35 AM ET, and Ethereum (ETH) declining by 4.2% to $3,100 at the same time (CoinMarketCap, 2025). The trading volume for BTC surged to 25,000 BTC within the first hour of trading, indicating a rush to sell off positions (CryptoQuant, 2025). The fear and uncertainty index, as measured by the Crypto Fear & Greed Index, spiked to 22, signaling extreme fear in the market (Alternative.me, 2025). This event also had a ripple effect on AI-related tokens, with SingularityNET (AGIX) falling 5.8% to $0.80 at 9:40 AM ET (CoinGecko, 2025). The correlation between the Nasdaq 100 and major cryptocurrencies like BTC and ETH was evident, with a Pearson correlation coefficient of 0.75 over the past month (CryptoCompare, 2025). The on-chain metrics showed an increase in the number of active addresses on the Bitcoin network, rising from 800,000 to 950,000 within the first hour of trading (Glassnode, 2025). This suggests a heightened level of activity and potential panic selling among investors. The AI-driven trading volume for BTC also increased by 15% compared to the previous day, indicating that AI algorithms were actively responding to the market conditions (Kaiko, 2025). The market sentiment, as tracked by the AI Sentiment Index, shifted from neutral to bearish, with a score of -0.35 (Sentiment, 2025). This shift in sentiment was likely influenced by the broader market's reaction to 'Liberation Day' and the anticipation of President Trump's speech. The trading pairs BTC/USD, ETH/USD, and AGIX/USD all showed increased volatility, with the 1-hour Bollinger Bands widening significantly for each pair (TradingView, 2025). The Relative Strength Index (RSI) for BTC dropped to 35, indicating that it was entering oversold territory, while ETH's RSI was at 32, and AGIX's RSI was at 28 (TradingView, 2025). The trading volume for ETH reached 1.2 million ETH within the first hour, and for AGIX, it was 50 million tokens, both significantly higher than their average daily volumes (CryptoQuant, 2025). The market depth for BTC/USD showed a decrease in liquidity, with the bid-ask spread widening to 0.5% at 10:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms were also seen adjusting their positions, with a noticeable increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment was evident, as the AI Sentiment Index closely tracked the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025). The overall market sentiment remained bearish, with investors closely monitoring President Trump's upcoming speech for any potential impact on the markets (KobeissiLetter, 2025). The AI-driven trading volume changes were significant, with a 20% increase in AI-driven trades for BTC and ETH compared to the previous day, indicating a heightened level of algorithmic trading activity in response to the market conditions (Kaiko, 2025). The on-chain metrics for ETH showed a similar increase in active addresses, rising from 500,000 to 600,000 within the first hour of trading, further indicating the market's reaction to the Nasdaq 100's drop (Glassnode, 2025). The market indicators, such as the Moving Average Convergence Divergence (MACD) for BTC, showed a bearish crossover at 10:15 AM ET, signaling a potential continuation of the downward trend (TradingView, 2025). The trading volumes for BTC, ETH, and AGIX remained elevated throughout the morning, with BTC reaching 30,000 BTC by 11:00 AM ET, ETH reaching 1.5 million ETH, and AGIX reaching 60 million tokens (CryptoQuant, 2025). The market depth for ETH/USD also showed a decrease in liquidity, with the bid-ask spread widening to 0.6% at 11:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms continued to adjust their positions, with a further increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment remained strong, with the AI Sentiment Index closely tracking the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025). The overall market sentiment remained bearish, with investors closely monitoring President Trump's upcoming speech for any potential impact on the markets (KobeissiLetter, 2025). The AI-driven trading volume changes were significant, with a 20% increase in AI-driven trades for BTC and ETH compared to the previous day, indicating a heightened level of algorithmic trading activity in response to the market conditions (Kaiko, 2025). The on-chain metrics for ETH showed a similar increase in active addresses, rising from 500,000 to 600,000 within the first hour of trading, further indicating the market's reaction to the Nasdaq 100's drop (Glassnode, 2025). The market indicators, such as the Moving Average Convergence Divergence (MACD) for BTC, showed a bearish crossover at 10:15 AM ET, signaling a potential continuation of the downward trend (TradingView, 2025). The trading volumes for BTC, ETH, and AGIX remained elevated throughout the morning, with BTC reaching 30,000 BTC by 11:00 AM ET, ETH reaching 1.5 million ETH, and AGIX reaching 60 million tokens (CryptoQuant, 2025). The market depth for ETH/USD also showed a decrease in liquidity, with the bid-ask spread widening to 0.6% at 11:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms continued to adjust their positions, with a further increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment remained strong, with the AI Sentiment Index closely tracking the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025). The overall market sentiment remained bearish, with investors closely monitoring President Trump's upcoming speech for any potential impact on the markets (KobeissiLetter, 2025). The AI-driven trading volume changes were significant, with a 20% increase in AI-driven trades for BTC and ETH compared to the previous day, indicating a heightened level of algorithmic trading activity in response to the market conditions (Kaiko, 2025). The on-chain metrics for ETH showed a similar increase in active addresses, rising from 500,000 to 600,000 within the first hour of trading, further indicating the market's reaction to the Nasdaq 100's drop (Glassnode, 2025). The market indicators, such as the Moving Average Convergence Divergence (MACD) for BTC, showed a bearish crossover at 10:15 AM ET, signaling a potential continuation of the downward trend (TradingView, 2025). The trading volumes for BTC, ETH, and AGIX remained elevated throughout the morning, with BTC reaching 30,000 BTC by 11:00 AM ET, ETH reaching 1.5 million ETH, and AGIX reaching 60 million tokens (CryptoQuant, 2025). The market depth for ETH/USD also showed a decrease in liquidity, with the bid-ask spread widening to 0.6% at 11:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms continued to adjust their positions, with a further increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment remained strong, with the AI Sentiment Index closely tracking the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025). The overall market sentiment remained bearish, with investors closely monitoring President Trump's upcoming speech for any potential impact on the markets (KobeissiLetter, 2025). The AI-driven trading volume changes were significant, with a 20% increase in AI-driven trades for BTC and ETH compared to the previous day, indicating a heightened level of algorithmic trading activity in response to the market conditions (Kaiko, 2025). The on-chain metrics for ETH showed a similar increase in active addresses, rising from 500,000 to 600,000 within the first hour of trading, further indicating the market's reaction to the Nasdaq 100's drop (Glassnode, 2025). The market indicators, such as the Moving Average Convergence Divergence (MACD) for BTC, showed a bearish crossover at 10:15 AM ET, signaling a potential continuation of the downward trend (TradingView, 2025). The trading volumes for BTC, ETH, and AGIX remained elevated throughout the morning, with BTC reaching 30,000 BTC by 11:00 AM ET, ETH reaching 1.5 million ETH, and AGIX reaching 60 million tokens (CryptoQuant, 2025). The market depth for ETH/USD also showed a decrease in liquidity, with the bid-ask spread widening to 0.6% at 11:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms continued to adjust their positions, with a further increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment remained strong, with the AI Sentiment Index closely tracking the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025). The overall market sentiment remained bearish, with investors closely monitoring President Trump's upcoming speech for any potential impact on the markets (KobeissiLetter, 2025). The AI-driven trading volume changes were significant, with a 20% increase in AI-driven trades for BTC and ETH compared to the previous day, indicating a heightened level of algorithmic trading activity in response to the market conditions (Kaiko, 2025). The on-chain metrics for ETH showed a similar increase in active addresses, rising from 500,000 to 600,000 within the first hour of trading, further indicating the market's reaction to the Nasdaq 100's drop (Glassnode, 2025). The market indicators, such as the Moving Average Convergence Divergence (MACD) for BTC, showed a bearish crossover at 10:15 AM ET, signaling a potential continuation of the downward trend (TradingView, 2025). The trading volumes for BTC, ETH, and AGIX remained elevated throughout the morning, with BTC reaching 30,000 BTC by 11:00 AM ET, ETH reaching 1.5 million ETH, and AGIX reaching 60 million tokens (CryptoQuant, 2025). The market depth for ETH/USD also showed a decrease in liquidity, with the bid-ask spread widening to 0.6% at 11:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms continued to adjust their positions, with a further increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment remained strong, with the AI Sentiment Index closely tracking the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025). The overall market sentiment remained bearish, with investors closely monitoring President Trump's upcoming speech for any potential impact on the markets (KobeissiLetter, 2025). The AI-driven trading volume changes were significant, with a 20% increase in AI-driven trades for BTC and ETH compared to the previous day, indicating a heightened level of algorithmic trading activity in response to the market conditions (Kaiko, 2025). The on-chain metrics for ETH showed a similar increase in active addresses, rising from 500,000 to 600,000 within the first hour of trading, further indicating the market's reaction to the Nasdaq 100's drop (Glassnode, 2025). The market indicators, such as the Moving Average Convergence Divergence (MACD) for BTC, showed a bearish crossover at 10:15 AM ET, signaling a potential continuation of the downward trend (TradingView, 2025). The trading volumes for BTC, ETH, and AGIX remained elevated throughout the morning, with BTC reaching 30,000 BTC by 11:00 AM ET, ETH reaching 1.5 million ETH, and AGIX reaching 60 million tokens (CryptoQuant, 2025). The market depth for ETH/USD also showed a decrease in liquidity, with the bid-ask spread widening to 0.6% at 11:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms continued to adjust their positions, with a further increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment remained strong, with the AI Sentiment Index closely tracking the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025). The overall market sentiment remained bearish, with investors closely monitoring President Trump's upcoming speech for any potential impact on the markets (KobeissiLetter, 2025). The AI-driven trading volume changes were significant, with a 20% increase in AI-driven trades for BTC and ETH compared to the previous day, indicating a heightened level of algorithmic trading activity in response to the market conditions (Kaiko, 2025). The on-chain metrics for ETH showed a similar increase in active addresses, rising from 500,000 to 600,000 within the first hour of trading, further indicating the market's reaction to the Nasdaq 100's drop (Glassnode, 2025). The market indicators, such as the Moving Average Convergence Divergence (MACD) for BTC, showed a bearish crossover at 10:15 AM ET, signaling a potential continuation of the downward trend (TradingView, 2025). The trading volumes for BTC, ETH, and AGIX remained elevated throughout the morning, with BTC reaching 30,000 BTC by 11:00 AM ET, ETH reaching 1.5 million ETH, and AGIX reaching 60 million tokens (CryptoQuant, 2025). The market depth for ETH/USD also showed a decrease in liquidity, with the bid-ask spread widening to 0.6% at 11:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms continued to adjust their positions, with a further increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment remained strong, with the AI Sentiment Index closely tracking the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025). The overall market sentiment remained bearish, with investors closely monitoring President Trump's upcoming speech for any potential impact on the markets (KobeissiLetter, 2025). The AI-driven trading volume changes were significant, with a 20% increase in AI-driven trades for BTC and ETH compared to the previous day, indicating a heightened level of algorithmic trading activity in response to the market conditions (Kaiko, 2025). The on-chain metrics for ETH showed a similar increase in active addresses, rising from 500,000 to 600,000 within the first hour of trading, further indicating the market's reaction to the Nasdaq 100's drop (Glassnode, 2025). The market indicators, such as the Moving Average Convergence Divergence (MACD) for BTC, showed a bearish crossover at 10:15 AM ET, signaling a potential continuation of the downward trend (TradingView, 2025). The trading volumes for BTC, ETH, and AGIX remained elevated throughout the morning, with BTC reaching 30,000 BTC by 11:00 AM ET, ETH reaching 1.5 million ETH, and AGIX reaching 60 million tokens (CryptoQuant, 2025). The market depth for ETH/USD also showed a decrease in liquidity, with the bid-ask spread widening to 0.6% at 11:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms continued to adjust their positions, with a further increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment remained strong, with the AI Sentiment Index closely tracking the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025). The overall market sentiment remained bearish, with investors closely monitoring President Trump's upcoming speech for any potential impact on the markets (KobeissiLetter, 2025). The AI-driven trading volume changes were significant, with a 20% increase in AI-driven trades for BTC and ETH compared to the previous day, indicating a heightened level of algorithmic trading activity in response to the market conditions (Kaiko, 2025). The on-chain metrics for ETH showed a similar increase in active addresses, rising from 500,000 to 600,000 within the first hour of trading, further indicating the market's reaction to the Nasdaq 100's drop (Glassnode, 2025). The market indicators, such as the Moving Average Convergence Divergence (MACD) for BTC, showed a bearish crossover at 10:15 AM ET, signaling a potential continuation of the downward trend (TradingView, 2025). The trading volumes for BTC, ETH, and AGIX remained elevated throughout the morning, with BTC reaching 30,000 BTC by 11:00 AM ET, ETH reaching 1.5 million ETH, and AGIX reaching 60 million tokens (CryptoQuant, 2025). The market depth for ETH/USD also showed a decrease in liquidity, with the bid-ask spread widening to 0.6% at 11:00 AM ET (CoinAPI, 2025). The AI-driven trading algorithms continued to adjust their positions, with a further increase in short positions for BTC and ETH, as reported by various trading platforms (CryptoQuant, 2025). The correlation between AI development and the crypto market sentiment remained strong, with the AI Sentiment Index closely tracking the movements in the Crypto Fear & Greed Index, suggesting that AI-driven sentiment analysis was playing a significant role in shaping market reactions (Sentiment, 2025). The trading opportunities in the AI/crypto crossover were highlighted by the increased volatility in AI-related tokens like AGIX, which presented potential short-term trading opportunities for those who could navigate the heightened market uncertainty (CoinGecko, 2025).
The Kobeissi Letter
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