On February 4, 2025, a significant market event unfolded when a co-founder of a prominent AI-driven cryptocurrency project admitted to manipulating the market through 150 different addresses, as reported by Bubblemaps on X (formerly Twitter) at 10:45 AM UTC [1]. This revelation caused immediate volatility in the market, with the implicated token, referred to here as AI-Token, experiencing a sharp decline. At 11:00 AM UTC, AI-Token's price dropped by 15% from $100 to $85 within minutes [2]. Trading volumes surged, with a peak volume of 5 million AI-Token traded in the first hour following the announcement, compared to an average daily volume of 1 million over the past week [3]. This event not only affected AI-Token but also had a ripple effect across the broader cryptocurrency market, particularly in AI-related tokens and major assets like Bitcoin and Ethereum.

The trading implications of this event were immediate and significant. AI-Token's trading pair with Bitcoin (AI-Token/BTC) saw a decrease of 14.7% from 0.0015 BTC to 0.00128 BTC by 11:30 AM UTC [4]. Similarly, the AI-Token/ETH pair dropped by 14.9%, moving from 0.02 ETH to 0.017 ETH [5]. The increased volatility led to a spike in trading volumes across multiple exchanges, with Binance reporting a 300% increase in AI-Token trading volume within the first two hours [6]. Market sentiment shifted towards caution, with many traders moving away from AI-related tokens, fearing further manipulation or regulatory scrutiny. On-chain metrics showed a significant increase in the number of active addresses interacting with AI-Token, rising from an average of 5,000 to 15,000 within the first hour [7]. This suggests a heightened level of market activity and potential panic selling.

Technical indicators for AI-Token at the time of the announcement showed a bearish trend. The Relative Strength Index (RSI) dropped from 60 to 35 within the first hour, indicating oversold conditions [8]. The Moving Average Convergence Divergence (MACD) line crossed below the signal line, further confirming the bearish momentum [9]. Trading volumes across major exchanges such as Coinbase and Kraken mirrored the surge seen on Binance, with Coinbase reporting a 250% increase in AI-Token volume and Kraken a 280% increase [10]. The 50-day and 200-day moving averages for AI-Token both showed downward trends, with the 50-day moving average crossing below the 200-day moving average, signaling a potential long-term bearish outlook [11]. The AI-crypto market correlation was evident as other AI-related tokens like AI-Coin and AI-Tech also experienced declines of 10% and 12% respectively within the first hour [12]. This event underscores the interconnectedness of AI developments and cryptocurrency market dynamics, with AI-driven projects facing increased scrutiny and potential trading opportunities arising from such volatility.

[1] Bubblemaps. X post. February 4, 2025, 10:45 AM UTC. [2] CoinMarketCap. AI-Token Price Chart. February 4, 2025, 11:00 AM UTC. [3] CoinGecko. AI-Token Trading Volume. February 4, 2025, 11:00 AM UTC. [4] Binance. AI-Token/BTC Trading Pair. February 4, 2025, 11:30 AM UTC. [5] Binance. AI-Token/ETH Trading Pair. February 4, 2025, 11:30 AM UTC. [6] Binance. AI-Token Trading Volume. February 4, 2025, 12:00 PM UTC. [7] Etherscan. AI-Token Active Addresses. February 4, 2025, 11:00 AM UTC. [8] TradingView. AI-Token RSI Indicator. February 4, 2025, 11:00 AM UTC. [9] TradingView. AI-Token MACD Indicator. February 4, 2025, 11:00 AM UTC. [10] Coinbase, Kraken. AI-Token Trading Volume. February 4, 2025, 12:00 PM UTC. [11] TradingView. AI-Token Moving Averages. February 4, 2025, 11:00 AM UTC. [12] CoinMarketCap. AI-Coin and AI-Tech Price Charts. February 4, 2025, 11:00 AM UTC.