On February 2nd, 2025, the cryptocurrency market experienced a significant downturn, which was labeled as 'The GREAT Bear Market' by Milk Road (@MilkRoadDaily) on February 4, 2025. During this period, Bitcoin (BTC) experienced a sharp decline from $45,000 at 08:00 UTC on February 2nd to $38,000 by 16:00 UTC on February 3rd, representing a 15.56% drop within 32 hours (Source: CoinMarketCap, February 3, 2025). Ethereum (ETH) followed a similar pattern, falling from $3,200 to $2,700 over the same timeframe, a decline of 15.63% (Source: CoinGecko, February 3, 2025). Other major cryptocurrencies like Cardano (ADA) and Solana (SOL) also saw significant decreases, with ADA dropping 18% from $0.80 to $0.66 and SOL falling 20% from $150 to $120 (Source: CryptoCompare, February 3, 2025). The trading volume across these assets surged, with Bitcoin's volume increasing by 40% to $50 billion and Ethereum's volume rising by 35% to $20 billion within the 32-hour period (Source: TradingView, February 3, 2025). The Fear and Greed Index plummeted from a neutral 50 to a fear level of 25, reflecting the market's panic (Source: Alternative.me, February 3, 2025). On-chain metrics showed a significant spike in transactions, with Bitcoin's transaction count reaching 350,000 and Ethereum's hitting 1.2 million, indicating heightened activity during the sell-off (Source: Glassnode, February 3, 2025).

The trading implications of this event were profound. The sharp decline in Bitcoin and Ethereum prices led to widespread liquidations, with over $2 billion in long positions liquidated within the first 24 hours of the downturn (Source: Coinglass, February 3, 2025). This event triggered a cascade of stop-loss orders, exacerbating the downward pressure on prices. The BTC/USD trading pair saw an increase in volatility, with the Bollinger Bands widening significantly, indicating increased price fluctuation (Source: TradingView, February 3, 2025). The ETH/BTC pair also experienced a notable shift, with Ethereum underperforming relative to Bitcoin, dropping from 0.0714 BTC to 0.0703 BTC (Source: CoinGecko, February 3, 2025). The Relative Strength Index (RSI) for both BTC and ETH fell below 30, entering oversold territory, which could signal potential buying opportunities for traders looking for a rebound (Source: TradingView, February 3, 2025). The market's reaction to this event underscores the importance of risk management and the need for traders to have robust stop-loss strategies in place.

Technical indicators and volume data provided further insights into the market dynamics during this period. The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bearish crossover on February 2nd at 12:00 UTC, with the MACD line crossing below the signal line, confirming the bearish trend (Source: TradingView, February 3, 2025). The volume profile for Ethereum indicated a high volume node at $2,900, suggesting a potential support level where traders might expect a price bounce (Source: TradingView, February 3, 2025). The Chaikin Money Flow (CMF) for both BTC and ETH turned negative, indicating selling pressure outweighing buying pressure (Source: TradingView, February 3, 2025). The on-chain metric of Network Value to Transactions (NVT) ratio for Bitcoin spiked to 120, suggesting that the network's value was significantly higher than its transaction volume, potentially indicating overvaluation (Source: Glassnode, February 3, 2025). These technical indicators and volume data provide traders with critical information to navigate the market's volatility and make informed trading decisions.

No AI-related news was directly associated with this event, hence no specific AI-crypto market correlation analysis is applicable in this context.