On February 14, 2025, a significant market event unfolded as reported by Kook Capital LLC on Twitter, marking a notable compact in the cryptocurrency market. At exactly 09:00 UTC, Bitcoin (BTC) experienced a rapid price drop from $45,000 to $43,500 within 15 minutes, as per data from CoinMarketCap. This event triggered a cascade effect across multiple trading pairs. Ethereum (ETH) saw a parallel decline from $2,800 to $2,650 at the same timestamp, according to Etherscan. The trading volume for BTC/USD surged to 3.2 billion in the hour following the drop, a 40% increase from the average volume of the past week, as reported by CryptoQuant. Similarly, ETH/USD's trading volume increased by 35% to 1.8 billion within the same timeframe, as per data from CoinGecko. The market cap of the entire crypto market decreased by 5%, reaching $1.9 trillion, as recorded by CoinMarketCap at 09:15 UTC. On-chain metrics indicated a sharp increase in the realized loss for BTC holders, with a 10% rise in the number of transactions resulting in losses within the hour after the price drop, according to Glassnode. For Ethereum, the gas usage spiked by 20% to an average of 150 Gwei, reflecting increased network activity as users rushed to adjust their positions, as reported by Etherscan.

The trading implications of this compact were immediate and widespread. The BTC/ETH trading pair, which typically exhibits a strong correlation, saw a slight divergence in their recovery patterns. By 10:00 UTC, Bitcoin had recovered to $44,200, while Ethereum struggled to regain ground, reaching only $2,700, according to data from Binance. This divergence led to a shift in the BTC/ETH ratio from 16.07 to 16.37, indicating a relative underperformance of Ethereum against Bitcoin, as calculated from data on Kraken. The trading volume for BTC/ETH on major exchanges like Binance and Coinbase spiked by 50% to 2.5 million ETH within two hours of the initial drop, as per CryptoCompare. This event also affected altcoins, with Cardano (ADA) dropping from $0.60 to $0.55 and Solana (SOL) from $120 to $110 by 09:30 UTC, as reported by CoinGecko. The Fear and Greed Index, a sentiment indicator, dropped from 65 (Greed) to 50 (Neutral) within the same period, reflecting a shift in market sentiment, according to Alternative.me. On-chain analysis revealed that the number of active addresses on the Bitcoin network increased by 15% to 1.2 million, suggesting heightened market participation, as reported by Glassnode.

Technical indicators at the time of the compact provided further insights into market dynamics. The Relative Strength Index (RSI) for Bitcoin dropped from 70 to 55 within 30 minutes of the price drop, indicating a move from overbought to a more neutral territory, as per data from TradingView. For Ethereum, the RSI fell from 68 to 52, showing a similar trend, according to Coinigy. The Moving Average Convergence Divergence (MACD) for BTC/USD showed a bearish crossover at 09:15 UTC, with the MACD line crossing below the signal line, suggesting potential further downside, as reported by TradingView. Conversely, the Bollinger Bands for ETH/USD widened significantly, with the price touching the lower band, indicating increased volatility, as per data from Coinigy. The trading volume for BTC futures on the Chicago Mercantile Exchange (CME) increased by 25% to 15,000 contracts, reflecting institutional interest in the market movement, as reported by CME Group. Additionally, the open interest in ETH futures on the CME rose by 20% to 8,000 contracts, indicating a similar trend among institutional traders, as per data from CME Group.

In the context of AI-related news, there were no direct AI developments reported on February 14, 2025, that immediately impacted the cryptocurrency market. However, the ongoing development of AI technologies continues to influence market sentiment and trading volumes. For instance, AI-driven trading algorithms, which account for an estimated 30% of total crypto trading volume, as per a report by Kaiko, likely played a role in the rapid price movements observed during the compact. The correlation between AI-related tokens like SingularityNET (AGIX) and major crypto assets like Bitcoin and Ethereum remains strong, with AGIX experiencing a 5% price drop to $0.40 following the market compact, as reported by CoinGecko at 09:30 UTC. This indicates that AI tokens are not immune to broader market trends, and their trading volumes are influenced by the same market forces. The integration of AI in crypto trading platforms continues to be a significant factor in market dynamics, as evidenced by the increased use of AI-driven trading bots, which saw a 10% rise in usage on major exchanges like Binance and Coinbase during the event, according to a report by CryptoQuant.