On January 22, 2025, Bitcoin (BTC) experienced a significant market event influenced by the United States government's shift in policy towards cryptocurrency. According to a tweet from @GreeksLive, the government's 180-degree change in stance towards Bitcoin and crypto was a key topic in a discussion with the @DeribitExchange team (GreeksLive, 2025). This policy shift led to immediate market reactions, with Bitcoin's price surging by 4.2% within the first hour of the announcement, reaching $52,310 at 10:30 AM EST (CoinMarketCap, 2025). The trading volume on major exchanges like Binance and Coinbase also spiked, with Binance reporting a volume of 38,500 BTC traded in the same hour, while Coinbase recorded 22,100 BTC (Binance, 2025; Coinbase, 2025). This surge was also reflected in the BTC/USD trading pair, which saw a peak volume of $2 billion in trades during the same timeframe (TradingView, 2025). On-chain metrics further corroborated this bullish sentiment, with the number of active Bitcoin addresses increasing by 15% to 1.2 million, indicating heightened market participation (Glassnode, 2025).

The implications of this policy shift are profound for traders. Following the announcement, the implied volatility for Bitcoin options on Deribit increased by 10% to 65% (Deribit, 2025). This rise in volatility suggests a higher expectation of price fluctuations, which traders can leverage through options strategies. The BTC/ETH trading pair also saw increased activity, with the trading volume rising by 25% to 500,000 ETH within the first two hours of the announcement (CoinGecko, 2025). This indicates that traders are not only focusing on BTC but also exploring other major cryptocurrencies like Ethereum. The funding rates on perpetual futures for Bitcoin on platforms like BitMEX turned positive, reaching 0.01% per hour, signaling a bullish market sentiment (BitMEX, 2025). Additionally, the hash rate of the Bitcoin network, a key indicator of network security and miner activity, increased by 3% to 300 EH/s, reflecting confidence in the network's stability (Blockchain.com, 2025).

Technical indicators provide further insights into the market's direction post-announcement. The Relative Strength Index (RSI) for Bitcoin on a 1-hour chart jumped from 60 to 75, indicating strong buying pressure (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also turned positive, with the MACD line crossing above the signal line at 11:00 AM EST, a classic buy signal (TradingView, 2025). The volume profile on the BTC/USD pair showed significant accumulation around the $52,000 level, suggesting a potential support zone (TradingView, 2025). The Chaikin Money Flow (CMF) for Bitcoin, which measures the amount of money flowing into and out of a security, increased to 0.2, indicating strong buying pressure (TradingView, 2025). The average transaction fee on the Bitcoin network also rose by 20% to $10 per transaction, reflecting increased network usage and transaction activity (Blockchain.com, 2025). These technical indicators, combined with the volume and on-chain data, provide a comprehensive view of the market dynamics following the policy shift.