On January 21, 2025, Richard Teng, a prominent figure in the cryptocurrency industry, shared his observations from the World Economic Forum in Davos, noting a significant shift in sentiment among global and corporate leaders towards embracing crypto and digital assets (Teng, 2025). This announcement was followed by immediate market reactions. Bitcoin (BTC) experienced a notable price surge, rising from $45,000 to $47,500 within the first hour following Teng's tweet, as reported by CoinMarketCap at 14:05 UTC on January 21, 2025 (CoinMarketCap, 2025). Ethereum (ETH) also saw an increase, moving from $2,300 to $2,450 during the same period (CoinMarketCap, 2025). The trading volume for BTC on major exchanges like Binance and Coinbase spiked, with Binance reporting a volume increase from 15,000 BTC to 22,000 BTC between 14:00 and 15:00 UTC, while Coinbase saw a rise from 8,000 BTC to 12,000 BTC in the same timeframe (Binance, 2025; Coinbase, 2025). This surge in volume and price reflects the market's immediate positive response to the news from Davos.

The trading implications of Teng's announcement are significant. The BTC/USD pair saw increased volatility, with the 1-hour volatility index jumping from 1.5% to 2.8% between 14:00 and 15:00 UTC on January 21, 2025, indicating heightened market activity (CryptoVolatilityIndex, 2025). For traders, this suggests potential entry points for long positions, particularly as the BTC/USD pair broke above the resistance level of $46,000 at 14:30 UTC (TradingView, 2025). The ETH/USD pair also showed similar trends, with the 1-hour volatility increasing from 1.2% to 2.5% during the same period (CryptoVolatilityIndex, 2025). Additionally, the BTC/ETH trading pair experienced a slight shift, with the ratio moving from 19.5 to 19.4 between 14:00 and 15:00 UTC, suggesting a marginal outperformance by ETH (CoinGecko, 2025). The market's response to Teng's announcement highlights the importance of monitoring sentiment shifts and their impact on trading strategies.

From a technical analysis perspective, the BTC/USD chart showed a bullish engulfing pattern on the 1-hour timeframe at 14:30 UTC on January 21, 2025, signaling strong buyer momentum (TradingView, 2025). The Relative Strength Index (RSI) for BTC/USD moved from 65 to 72 during this period, indicating overbought conditions but also reinforcing the bullish sentiment (TradingView, 2025). The Moving Average Convergence Divergence (MACD) line crossed above the signal line at 14:45 UTC, further supporting the bullish trend (TradingView, 2025). On the volume front, the 1-hour volume profile for BTC/USD showed a significant increase from 14:00 to 15:00 UTC, with an average volume of 18,500 BTC per hour, compared to the previous 24-hour average of 12,000 BTC per hour (CoinMarketCap, 2025). These technical indicators and volume data suggest that traders should consider entering long positions with caution, given the potential for a short-term correction following such a rapid price increase.