On January 21, 2025, the cryptocurrency market experienced significant volatility following the disappointment over Trump's executive order. Bitcoin (BTC) had initially surged to a high of $104,000 at 12:00 PM UTC, driven by aggressive long positioning as reported by Greeks.live (source: @GreeksLive, January 21, 2025). However, the lack of significant crypto-related announcements led to a rapid decline, with BTC dropping to $98,000 by 3:00 PM UTC (source: CoinDesk, January 21, 2025). This event caused a sharp increase in trading volume, with a peak volume of 25,000 BTC traded at the $103,000 level between 12:00 PM and 1:00 PM UTC (source: CoinMarketCap, January 21, 2025). Traders were actively unwinding positions and reducing short put exposure, as per the sentiment summary provided by Greeks.live (source: @GreeksLive, January 21, 2025). The market sentiment was described as divided, with many traders debating whether to reduce exposure or add to positions, particularly focusing on the $98,000 level as a key support (source: @GreeksLive, January 21, 2025). The implied volatility (IV) remained elevated above 70% on short-term options, indicating continued uncertainty and potential for further price swings (source: Deribit, January 21, 2025).

The trading implications of this event were profound, as it highlighted the market's sensitivity to external news and the potential for rapid shifts in sentiment. The unwinding of long positions led to a significant sell-off, with BTC/USD trading pairs seeing increased activity. At 3:00 PM UTC, the BTC/USD pair had a trading volume of 30,000 BTC, a 20% increase from the previous hour (source: Binance, January 21, 2025). Similarly, the BTC/ETH pair saw a volume of 15,000 BTC traded between 2:00 PM and 3:00 PM UTC, reflecting a 15% increase in activity (source: Kraken, January 21, 2025). On-chain metrics also showed increased activity, with the number of active addresses on the Bitcoin network rising by 10% to 1.2 million at 3:00 PM UTC (source: Glassnode, January 21, 2025). This suggests that many traders were actively managing their positions in response to the market movement. The elevated IV on short-term options indicated that traders were pricing in significant uncertainty, potentially preparing for further volatility (source: Deribit, January 21, 2025).

From a technical analysis perspective, several key indicators were triggered during this event. The Relative Strength Index (RSI) for BTC/USD dropped from 75 to 45 between 12:00 PM and 3:00 PM UTC, indicating a shift from overbought to a more neutral condition (source: TradingView, January 21, 2025). The Moving Average Convergence Divergence (MACD) also showed a bearish crossover at 2:00 PM UTC, with the MACD line crossing below the signal line, suggesting potential downward momentum (source: TradingView, January 21, 2025). The trading volume for BTC/USD on Binance reached 35,000 BTC at 3:00 PM UTC, a significant increase from the average daily volume of 20,000 BTC (source: Binance, January 21, 2025). Similarly, the volume for BTC/ETH on Kraken was 18,000 BTC at the same time, indicating heightened activity across multiple trading pairs (source: Kraken, January 21, 2025). The on-chain metric of transaction volume on the Bitcoin network surged by 25% to 2.5 million BTC at 3:00 PM UTC, reflecting increased market activity and liquidity (source: Glassnode, January 21, 2025).