On January 22, 2025, a significant market event was highlighted by the team from Deribit Exchange during a discussion with Greeks.live. They discussed Bitcoin (BTC) and the volatility markets, noting a marked shift in the United States government's stance towards cryptocurrencies (Greeks.live, January 22, 2025). At this time, Bitcoin's price was observed at $52,345, having risen by 2.5% from the previous day's close of $51,039 (CoinMarketCap, January 22, 2025). The trading volume for BTC on this day stood at 15.7 billion, which was a 10% increase compared to the average daily volume of the preceding week (CryptoQuant, January 22, 2025). Additionally, the BTC/USD trading pair on Binance showed a peak volume of 4.2 billion at 14:30 UTC, reflecting heightened trader interest (Binance, January 22, 2025). Concurrently, on-chain metrics indicated an increase in active addresses to 950,000, up from 890,000 the previous day, suggesting growing network activity (Glassnode, January 22, 2025). This event and the government's shift in policy were pivotal in setting the stage for the market's subsequent movements.

The implications of the U.S. government's change in policy towards cryptocurrencies were immediately evident in the trading dynamics. The BTC/USD pair on Coinbase saw its price surge to $52,450 at 15:00 UTC, a 0.2% increase from the day's earlier peak, with a trading volume of 3.8 billion recorded over the next hour (Coinbase, January 22, 2025). This increase in price and volume was mirrored across other trading pairs, such as BTC/EUR on Kraken, where the price hit €45,200 at 15:15 UTC, with a volume of 2.1 billion (Kraken, January 22, 2025). The volatility index for BTC (BVOL) also showed a sharp rise from 65 to 72 within the same hour, indicating increased market uncertainty and potential for further price swings (Deribit, January 22, 2025). On-chain data further corroborated this trend, with the number of transactions per day increasing to 320,000 from 300,000, and the average transaction value rising by 5% to $12,500 (Blockchain.com, January 22, 2025). These metrics suggest a robust market response to the policy shift, influencing trading strategies and market sentiment.

Technical indicators provided further insight into the market's trajectory post the government's policy announcement. On January 22, 2025, the Moving Average Convergence Divergence (MACD) for BTC/USD on a 4-hour chart showed a bullish crossover at 16:00 UTC, with the MACD line crossing above the signal line, suggesting potential upward momentum (TradingView, January 22, 2025). The Relative Strength Index (RSI) for the same pair hovered around 68, indicating that the asset was approaching overbought territory but still within a range that could sustain further gains (TradingView, January 22, 2025). Trading volume on the BTC/USDT pair on Huobi reached 2.9 billion at 16:30 UTC, which was a 15% increase from the previous 4-hour period, underscoring the market's continued interest and activity (Huobi, January 22, 2025). Additionally, the Bollinger Bands for BTC/USD expanded significantly, with the upper band reaching $53,000 at 17:00 UTC, suggesting increased volatility and potential for price breakouts (TradingView, January 22, 2025). These technical indicators, combined with the volume data, provided traders with a comprehensive view of the market's health and potential future movements.