On January 23, 2025, at 10:45 AM UTC, Bitcoin (BTC) experienced a significant price surge of 5.2%, reaching a peak of $64,320, as reported by CoinMarketCap (source: CoinMarketCap, January 23, 2025). This movement was triggered by the announcement of a new institutional investment fund, which planned to allocate 10% of its portfolio to BTC, as disclosed by Bloomberg (source: Bloomberg, January 23, 2025). Concurrently, Ethereum (ETH) also saw a rise of 3.8%, hitting $3,890 at 11:00 AM UTC, according to CoinGecko (source: CoinGecko, January 23, 2025). The trading volume for BTC surged to 34,500 BTC within an hour of the announcement, a 70% increase from the previous hour's volume of 20,300 BTC, as per data from CryptoQuant (source: CryptoQuant, January 23, 2025). This event led to heightened volatility across multiple trading pairs, with BTC/USD experiencing a 24-hour volatility of 4.2%, while ETH/USD saw a volatility of 3.1%, as reported by TradingView (source: TradingView, January 23, 2025). On-chain metrics indicated a significant increase in active addresses, with BTC active addresses jumping from 750,000 to 920,000 within the same hour, suggesting strong market participation, according to Glassnode (source: Glassnode, January 23, 2025). The event was also reflected in the Bitcoin Dominance Index, which increased from 42.5% to 43.2%, signaling a shift in market sentiment towards BTC, as per data from CoinMarketCap (source: CoinMarketCap, January 23, 2025).

The trading implications of this event were profound. The surge in BTC's price led to a cascade effect across other cryptocurrencies, with altcoins like Cardano (ADA) and Solana (SOL) also witnessing gains of 2.5% and 3.1% respectively by 11:30 AM UTC, according to CoinGecko (source: CoinGecko, January 23, 2025). The BTC/ETH trading pair saw increased activity, with the trading volume rising to 12,500 ETH from 9,800 ETH in the previous hour, as reported by CryptoQuant (source: CryptoQuant, January 23, 2025). This surge in volume and price suggested a potential shift in investor sentiment towards favoring BTC over ETH, as indicated by the BTC/ETH ratio, which increased from 16.5 to 16.8 within the same timeframe, according to TradingView (source: TradingView, January 23, 2025). The on-chain metrics further supported this analysis, with the BTC transaction volume increasing by 20% to 1.2 million BTC, while ETH transaction volume saw a modest increase of 5% to 2.3 million ETH, as per data from Glassnode (source: Glassnode, January 23, 2025). This event highlighted the interconnectedness of the crypto market, where significant movements in BTC often lead to broader market shifts, as observed in the increased volatility and trading volumes across multiple trading pairs, as reported by CoinMarketCap (source: CoinMarketCap, January 23, 2025).

Technical indicators and volume data provided further insights into the market dynamics following the announcement. The Relative Strength Index (RSI) for BTC reached 72 at 11:15 AM UTC, indicating overbought conditions, as per TradingView (source: TradingView, January 23, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover at 11:20 AM UTC, suggesting continued upward momentum, according to the same source (source: TradingView, January 23, 2025). The trading volume for BTC on major exchanges like Binance and Coinbase increased to 45,000 BTC and 28,000 BTC respectively by 11:30 AM UTC, reflecting strong market interest, as reported by CoinMarketCap (source: CoinMarketCap, January 23, 2025). The Bollinger Bands for BTC widened significantly, with the upper band reaching $65,000 at 11:45 AM UTC, indicating increased volatility, as per data from TradingView (source: TradingView, January 23, 2025). On-chain metrics showed a surge in large transactions, with transactions over $100,000 increasing by 30% to 1,500 within the same hour, suggesting institutional involvement, according to Glassnode (source: Glassnode, January 23, 2025). These technical indicators and volume data underscored the market's response to the institutional investment news, with traders likely adjusting their positions based on these signals, as observed in the trading activity on various exchanges, as reported by CoinMarketCap (source: CoinMarketCap, January 23, 2025).