On April 20, 2025, a notable tweet by Crypto Rover (@rovercrc) highlighted the correlation between China's monetary policy and Bitcoin's price, stating, 'THE MORE MONEY CHINA PRINTS! THE HIGHER #BITCOIN GOES' (Crypto Rover, April 20, 2025). This statement was made in the context of a recent increase in China's money supply, reported by the People's Bank of China (PBoC) to have risen by 12.5% year-over-year as of March 2025 (PBoC, March 2025). In response, Bitcoin's price surged to $85,200 at 10:00 AM UTC on April 20, 2025, up from $83,000 the previous day (CoinMarketCap, April 20, 2025). This price movement aligns with historical trends where Bitcoin often reacts positively to inflationary policies in major economies (Bloomberg, April 2025). The trading volume for Bitcoin also spiked, reaching 35,000 BTC traded on major exchanges within the first hour of the tweet's publication (Coinbase, April 20, 2025). This surge in volume indicates strong market interest and potential for further price increases driven by China's monetary policy changes.

The trading implications of this event are significant. The immediate reaction to Crypto Rover's tweet saw Bitcoin's trading volume on the BTC/USD pair increase by 15% within an hour, reaching $3 billion in trades (Binance, April 20, 2025). This suggests a bullish sentiment among traders, likely driven by the anticipation of further monetary easing in China. On the BTC/CNY trading pair, the volume increased by 20%, with trades amounting to 21 billion CNY (Huobi, April 20, 2025). The volatility index for Bitcoin, as measured by the Bitcoin Volatility Index (BVOL), jumped from 50 to 65, indicating heightened market uncertainty and potential for rapid price changes (CryptoCompare, April 20, 2025). Traders looking to capitalize on this trend might consider long positions on Bitcoin, especially on exchanges with high liquidity like Binance and Coinbase, where the impact of China's monetary policy is most evident (TradingView, April 20, 2025).

Technical indicators and volume data further support the bullish outlook for Bitcoin following China's monetary policy changes. On April 20, 2025, at 11:00 AM UTC, the Relative Strength Index (RSI) for Bitcoin on the 1-hour chart was at 72, indicating overbought conditions but also strong momentum (TradingView, April 20, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover, with the MACD line crossing above the signal line, suggesting continued upward price movement (Investing.com, April 20, 2025). On-chain metrics also showed increased activity, with the number of active Bitcoin addresses rising by 10% to 1.2 million within the last 24 hours (Glassnode, April 20, 2025). This increase in active addresses, coupled with a 5% rise in transaction volume to 2.5 million BTC, indicates growing interest and participation in the Bitcoin network (Blockchain.com, April 20, 2025). Traders should monitor these indicators closely to time their entries and exits effectively, especially in light of the potential for further monetary policy adjustments in China.

Frequently asked questions include: How does China's monetary policy affect Bitcoin's price? China's monetary policy, particularly its decision to increase money supply, can lead to inflation fears, which in turn drive investors towards assets like Bitcoin as a hedge against currency devaluation. What should traders watch for in terms of Bitcoin's trading volume? Traders should monitor spikes in trading volume, especially on major trading pairs like BTC/USD and BTC/CNY, as these can indicate strong market sentiment and potential price movements. How can technical indicators help in trading Bitcoin following China's monetary policy changes? Technical indicators like RSI and MACD can help traders identify overbought conditions and potential entry or exit points, while on-chain metrics provide insights into network activity and investor interest.