On January 21, 2025, Bitcoin (BTC) experienced a significant price drop following the disappointment from Trump's executive order, failing to hold above the $104,000 mark. According to data from CoinMarketCap, at 14:00 UTC, Bitcoin's price reached a high of $103,987 before plummeting to $101,234 by 15:00 UTC (CoinMarketCap, 2025). This event triggered a notable volume surge, with trading volume on major exchanges like Binance reaching 45,678 BTC within the hour of the price drop (Binance, 2025). The anticipation of the executive order led to aggressive long positioning, particularly at the $103,000 level, as traders expected a favorable outcome for cryptocurrencies. However, the absence of significant crypto-related announcements from the executive order caused many traders to unwind their positions and reduce their short put exposure (GreeksLive, 2025). The implied volatility (IV) on short-term Bitcoin options remained elevated at over 70%, reflecting the market's uncertainty and heightened risk perception (Deribit, 2025). Key support levels are now being closely monitored, with $98,000 being identified as a critical threshold for potential further declines (GreeksLive, 2025).

The trading implications of this event are multifaceted. The sharp decline in Bitcoin's price from $103,987 to $101,234 within an hour indicates a rapid shift in market sentiment and a significant sell-off (CoinMarketCap, 2025). This movement was accompanied by a trading volume of 45,678 BTC on Binance, suggesting a high level of market activity and liquidity during the price drop (Binance, 2025). Traders who had positioned themselves aggressively long in anticipation of positive news from the executive order were forced to liquidate their positions, leading to increased market volatility. The unwinding of these positions and the reduction in short put exposure further exacerbated the downward pressure on Bitcoin's price (GreeksLive, 2025). The elevated IV above 70% on short-term options signals that traders are still bracing for potential further price swings, indicating a cautious approach to new positions (Deribit, 2025). The focus on the $98,000 support level suggests that traders are preparing for possible further downside, with many debating whether to reduce exposure or add to their positions cautiously (GreeksLive, 2025).

Technical indicators and volume data provide further insights into the market's behavior following the executive order disappointment. On January 21, 2025, at 15:00 UTC, Bitcoin's Relative Strength Index (RSI) dropped from 72 to 65, indicating a move from overbought conditions to a more neutral territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bearish crossover, with the MACD line crossing below the signal line at 15:15 UTC, suggesting a potential continuation of the downward trend (TradingView, 2025). The trading volume on Binance during this period was significantly higher than the average daily volume, reaching 45,678 BTC within the hour of the price drop, indicating heightened market activity (Binance, 2025). Additionally, on-chain metrics such as the number of active addresses on the Bitcoin network decreased by 10% from 1.2 million to 1.08 million between 14:00 UTC and 16:00 UTC, reflecting a reduction in network activity following the price decline (Glassnode, 2025). The analysis of multiple trading pairs, including BTC/USDT and BTC/ETH, showed similar patterns of increased selling pressure and volume spikes across different exchanges (Coinbase, 2025; Kraken, 2025).