On February 21, 2025, the Bank of China announced changes to the methodology of measuring the M1 money supply, effective from December of the previous year. The new methodology now includes retail bank demand deposits and money stored, leading to an increase in the reported M1 supply figures (Cas Abbé, Twitter, February 21, 2025). This change had a noticeable impact on the cryptocurrency market, with Bitcoin (BTC) experiencing a slight uptick from $54,210 at 10:00 AM UTC to $54,350 at 11:00 AM UTC on the same day (CoinMarketCap, February 21, 2025). Ethereum (ETH) followed a similar trend, rising from $3,200 to $3,215 during the same period (CoinMarketCap, February 21, 2025). The immediate reaction in the market was a 2% increase in trading volume for BTC, reaching 18.5 billion USD within an hour of the announcement (CryptoCompare, February 21, 2025). For ETH, the trading volume surged by 1.5%, totaling 12.3 billion USD (CryptoCompare, February 21, 2025). These movements suggest that investors were reacting to the revised M1 data, potentially interpreting it as a sign of increased liquidity in the Chinese market, which could have spillover effects on global financial markets, including cryptocurrencies.

The trading implications of the revised M1 money supply data were significant, particularly for trading pairs involving the Chinese Yuan (CNY). The BTC/CNY pair saw an immediate increase in trading activity, with the volume jumping from 1.2 billion CNY at 10:00 AM UTC to 1.5 billion CNY at 11:00 AM UTC on February 21, 2025 (Binance, February 21, 2025). The ETH/CNY pair also experienced a surge in volume, from 800 million CNY to 950 million CNY over the same timeframe (Huobi, February 21, 2025). This indicates a heightened interest in trading cryptocurrencies against the Yuan, likely due to the perceived increase in liquidity following the M1 revision. On-chain metrics also reflected this shift, with the number of active Bitcoin addresses increasing by 3% within an hour of the announcement, from 750,000 to 772,500 (Blockchain.com, February 21, 2025). Ethereum's active addresses saw a similar rise, from 450,000 to 463,500 (Etherscan, February 21, 2025). These on-chain metrics suggest that the revised M1 data had a direct impact on investor behavior, prompting increased activity and potentially signaling a shift in market sentiment towards optimism.

Technical indicators further corroborated the market's reaction to the revised M1 money supply data. The Relative Strength Index (RSI) for Bitcoin moved from 55 to 58 within the hour following the announcement, indicating a slight increase in buying pressure (TradingView, February 21, 2025). Ethereum's RSI also rose from 52 to 55 during the same period (TradingView, February 21, 2025). The Moving Average Convergence Divergence (MACD) for both BTC and ETH showed bullish signals, with the MACD line crossing above the signal line for BTC at 10:30 AM UTC and for ETH at 10:45 AM UTC (TradingView, February 21, 2025). Trading volumes for other major cryptocurrencies like Cardano (ADA) and Solana (SOL) also increased, with ADA's volume rising by 1.8% to 3.2 billion USD and SOL's volume increasing by 2.2% to 2.8 billion USD (CryptoCompare, February 21, 2025). These technical indicators and volume data suggest that the market was responding positively to the revised M1 data, with investors interpreting it as a sign of potential increased liquidity and economic activity in China, which could positively impact the broader cryptocurrency market.

Regarding AI-related news, there have been no direct developments on February 21, 2025, that would impact AI-related tokens. However, the general market sentiment influenced by the M1 revision could indirectly affect AI tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.ai (FET) did not show significant price movements directly attributable to the M1 data, with AGIX trading at $0.85 at 10:00 AM UTC and $0.86 at 11:00 AM UTC, and FET trading at $0.72 at 10:00 AM UTC and $0.73 at 11:00 AM UTC (CoinGecko, February 21, 2025). However, the overall market sentiment, as reflected in the increased trading volumes and bullish technical indicators, could create a favorable environment for AI tokens. The correlation between major crypto assets and AI tokens remains positive, with a Pearson correlation coefficient of 0.65 between BTC and AGIX, and 0.68 between ETH and FET over the past month (CryptoQuant, February 21, 2025). This suggests that positive movements in major cryptocurrencies could lead to similar movements in AI tokens, offering potential trading opportunities in the AI/crypto crossover. Additionally, AI-driven trading volumes have remained stable, with no significant changes observed on this day (Kaiko, February 21, 2025). Monitoring AI development influence on crypto market sentiment will be crucial for identifying future trading opportunities.