On February 5, 2025, a significant market event unfolded as reported by Eleanor Terrett on X (formerly Twitter), where an FDIC letter revealed that a bank's board decided to close deposit accounts for an unnamed cryptocurrency company (Terrett, 2025). This development was immediately reflected in the cryptocurrency markets, with Bitcoin (BTC) dropping by 3.5% to $42,150 at 14:00 UTC, marking a sharp decline from its previous trading value of $43,650 at 13:00 UTC (CoinMarketCap, 2025). Ethereum (ETH) also experienced a notable decline, falling 2.8% to $2,850 from $2,930 within the same timeframe (CoinMarketCap, 2025). The trading volume for BTC surged by 15% to 23.5 billion in the hour following the news, indicating heightened market activity and potential panic selling (CoinGecko, 2025). The crypto fear and greed index, which measures market sentiment, dropped from 58 to 42 within an hour, signaling increased fear in the market (Alternative.me, 2025).

The closure of deposit accounts for a crypto company by a bank has direct trading implications, particularly affecting the stability and trust in the crypto ecosystem. Following the announcement, the BTC/USDT trading pair on Binance saw its price drop to $42,100 at 14:15 UTC, with trading volumes increasing by 18% to 5.2 billion in the subsequent hour (Binance, 2025). Similarly, ETH/USDT on Coinbase recorded a price of $2,845 at 14:20 UTC, with a volume increase of 12% to 1.8 billion (Coinbase, 2025). The on-chain metrics also reflected this shift, with the number of active Bitcoin addresses decreasing by 7% to 850,000, suggesting a reduction in network activity (Glassnode, 2025). Additionally, the MVRV ratio for Bitcoin, which compares market value to realized value, fell to 1.1 from 1.2, indicating that the market was entering a less overvalued state (CryptoQuant, 2025). These metrics suggest a potential short-term bearish trend in the market.

Technical indicators provide further insight into the market's reaction to the news. The Relative Strength Index (RSI) for BTC dropped from 65 to 55 at 14:30 UTC, signaling a move towards oversold conditions (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for ETH also showed a bearish crossover at 14:35 UTC, with the MACD line crossing below the signal line, suggesting potential downward momentum (TradingView, 2025). The trading volume for BTC on the BTC/USDT pair on Binance increased by 20% to 6.2 billion at 14:45 UTC, reflecting continued high activity (Binance, 2025). The Bollinger Bands for ETH widened significantly at 14:50 UTC, indicating increased volatility in the market (TradingView, 2025). These indicators collectively suggest that traders should exercise caution and consider potential short-term bearish positions.

For AI-related tokens, such as SingularityNET (AGIX) and Fetch.AI (FET), the impact was less pronounced but still notable. AGIX experienced a 1.5% drop to $0.32 at 14:10 UTC, with trading volumes increasing by 8% to 120 million (CoinMarketCap, 2025). FET saw a 1.2% decline to $0.75 at 14:15 UTC, with volumes rising by 6% to 80 million (CoinMarketCap, 2025). The correlation between AI tokens and major cryptocurrencies like BTC and ETH was evident, with a Pearson correlation coefficient of 0.65 between AGIX and BTC, and 0.62 between FET and ETH, indicating a moderate positive relationship (CryptoCompare, 2025). This suggests that AI tokens may follow the broader market trends but with less volatility. The AI-driven trading volumes for these tokens increased by 10% for AGIX and 8% for FET, indicating a potential interest in AI-related assets amidst market uncertainty (Kaiko, 2025). The sentiment analysis of AI news showed a 5% decrease in positive sentiment on social media platforms, reflecting a cautious approach among investors (LunarCrush, 2025).