On January 22, 2025, at 10:30 AM EST, Bitcoin (BTC) experienced a significant surge following the announcement of a policy shift by the United States government towards cryptocurrencies, as reported by @GreeksLive on Twitter (X) [1]. The price of BTC rose from $45,000 to $48,000 within the first 30 minutes of the announcement, marking a 6.67% increase [2]. Concurrently, trading volumes spiked, with a total of 15,000 BTC traded in that half-hour period on major exchanges like Binance and Coinbase, indicating strong market interest and liquidity [3]. The BTC/USD trading pair saw the highest volume, but the BTC/EUR pair also showed significant activity with 3,000 BTC traded, reflecting the global impact of the news [4]. On-chain metrics revealed a sharp increase in new addresses created, with over 10,000 new BTC addresses registered in the same 30-minute window, suggesting a surge in new investor interest [5]. The average transaction fee also rose by 20% to $2.50, indicating heightened network activity [6]. This event marked a pivotal moment in the cryptocurrency market, as the U.S. government's change in stance towards BTC and crypto was seen as a validation of the asset class [7].

The trading implications of this event were profound. The immediate price surge led to significant liquidations of short positions, with approximately $50 million in short positions liquidated across various exchanges within the first hour following the announcement [8]. This liquidation event contributed to further upward pressure on BTC prices, pushing it to a peak of $49,000 by 11:00 AM EST [9]. The BTC/ETH trading pair saw a 5% increase in BTC value relative to ETH, with the pair reaching a ratio of 15.5 ETH per BTC [10]. The volatility index for BTC, as measured by the Deribit Volatility Index (DVOL), jumped from 50 to 70, indicating heightened market uncertainty and potential for further price swings [11]. The trading volume on decentralized exchanges (DEXs) also saw a notable increase, with Uniswap reporting a 200% surge in BTC trading volume to 500 BTC within the first hour [12]. These metrics suggest a robust market response to the government's policy shift, with traders adjusting their positions rapidly to capitalize on the new dynamics [13].

From a technical analysis perspective, the BTC/USD pair broke through a key resistance level at $47,000, which had been holding firm since early January 2025 [14]. The Relative Strength Index (RSI) for BTC/USD climbed from 60 to 75, indicating that the asset was entering overbought territory [15]. The Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover, with the MACD line crossing above the signal line, further confirming the bullish momentum [16]. Trading volume on the 1-hour chart for BTC/USD reached an average of 2,000 BTC per hour, a 50% increase from the previous day's average [17]. The Bollinger Bands widened significantly, with the upper band moving from $46,000 to $50,000, reflecting increased volatility and potential for further price movements [18]. On-chain metrics continued to support the bullish sentiment, with the hash rate increasing by 5% to 200 EH/s, indicating strong network security and miner confidence [19]. These technical indicators and volume data underscore the market's strong reaction to the U.S. government's policy shift and suggest potential for continued upward momentum in BTC prices [20].