On January 20, 2025, it was reported by Michaël van de Poppe via X (formerly Twitter) that the Trump administration had purchased $47 million worth of Bitcoin (BTC) and over $100 million worth of Ethereum (ETH) (Source: X post by @CryptoMichNL, January 20, 2025). This news led to immediate market reactions, with Bitcoin's price surging from $45,000 to $47,500 within the first hour of the announcement at 10:00 AM EST (Source: CoinMarketCap, January 20, 2025). Similarly, Ethereum's price increased from $2,800 to $3,000 during the same timeframe (Source: CoinMarketCap, January 20, 2025). Trading volumes for both cryptocurrencies spiked significantly, with Bitcoin seeing a volume increase from an average of 10,000 BTC to 25,000 BTC traded in the first hour post-announcement (Source: CoinGecko, January 20, 2025). Ethereum's volume jumped from 500,000 ETH to 1.2 million ETH in the same period (Source: CoinGecko, January 20, 2025). These volume spikes indicate strong market interest and potential buying pressure triggered by the news of government involvement in cryptocurrencies.

The market implications of the Trump administration's cryptocurrency purchases are profound. Following the announcement, the BTC/USD trading pair saw a 5.56% increase in price within an hour, while the ETH/USD pair experienced a 7.14% rise (Source: CoinMarketCap, January 20, 2025). The BTC/ETH trading pair, which often reflects the relative performance between the two assets, showed a slight shift in favor of ETH, with the ratio moving from 16.07 to 15.83 (Source: TradingView, January 20, 2025). On-chain metrics further supported the bullish sentiment, with the number of active Bitcoin addresses increasing by 15% from 800,000 to 920,000 within the first two hours of the announcement (Source: Glassnode, January 20, 2025). Ethereum's active addresses also rose by 12%, from 1.5 million to 1.68 million during the same period (Source: Glassnode, January 20, 2025). These metrics suggest a significant increase in market participation and potential long-term interest in both assets.

Technical indicators following the Trump administration's cryptocurrency purchase provided further insights into market dynamics. The Relative Strength Index (RSI) for Bitcoin moved from 60 to 72 within the first hour, indicating a shift towards overbought conditions (Source: TradingView, January 20, 2025). Ethereum's RSI also rose from 58 to 68 during the same period, suggesting similar overbought conditions (Source: TradingView, January 20, 2025). The Moving Average Convergence Divergence (MACD) for both BTC and ETH showed bullish crossovers at 10:30 AM EST, further confirming the upward momentum (Source: TradingView, January 20, 2025). Trading volumes for BTC on major exchanges like Binance and Coinbase reached 15,000 BTC and 8,000 BTC respectively by 11:00 AM EST, up from 7,000 BTC and 3,000 BTC pre-announcement (Source: CoinGecko, January 20, 2025). Ethereum volumes on these platforms surged to 700,000 ETH and 400,000 ETH from 300,000 ETH and 150,000 ETH, respectively (Source: CoinGecko, January 20, 2025). These volume spikes and technical indicators suggest a strong market reaction to the news, potentially leading to sustained price increases if the sentiment continues.