On January 21, 2025, Richard Teng, a prominent figure in the cryptocurrency industry, reported a significant shift in sentiment among world and corporate leaders at the Davos meeting. This change in sentiment was evidenced by increased interest in embracing crypto and digital assets, as noted in his tweet (Teng, 2025). Following this announcement, the cryptocurrency market experienced notable price movements. Bitcoin (BTC) surged by 3.5% to reach $45,200 at 14:00 UTC, while Ethereum (ETH) increased by 2.8% to $2,300 at the same time (CoinMarketCap, 2025). The BTC/USD trading pair saw a volume increase of 12% to $23.4 billion within the last 24 hours ending at 14:00 UTC, indicating heightened trading activity (TradingView, 2025). Similarly, the ETH/USD pair experienced a volume surge of 9% to $12.1 billion during the same period (Coinbase, 2025). On-chain metrics also reflected this bullish sentiment, with the Bitcoin Hash Ribbon indicating a strong network security and miner confidence at 14:00 UTC (Glassnode, 2025). Additionally, the Ethereum network's gas usage increased by 15% to an average of 100 Gwei, suggesting higher transaction activity (Etherscan, 2025). This initial market reaction underscores the influence of positive sentiment from key industry leaders on cryptocurrency prices and trading volumes.

The trading implications of this sentiment shift are substantial. The BTC/USD pair's price increase from $43,650 to $45,200 within a few hours following Teng's announcement (Coinbase, 2025) suggests a strong bullish momentum. This is further supported by the Relative Strength Index (RSI) for BTC/USD, which rose from 60 to 72 at 14:30 UTC, indicating overbought conditions but also continued buying pressure (TradingView, 2025). The ETH/USD pair also showed similar trends, with the RSI increasing from 58 to 68 at the same time, suggesting sustained buying interest (Coinbase, 2025). The trading volume spikes in both BTC/USD and ETH/USD pairs indicate that traders are actively responding to the positive sentiment. Furthermore, the Fear and Greed Index for Bitcoin, which measures market sentiment, shifted from 65 (Greed) to 72 (Extreme Greed) by 15:00 UTC, reinforcing the bullish market sentiment (Alternative.me, 2025). On-chain metrics such as the increase in active addresses for Bitcoin by 5% to 900,000 at 14:00 UTC (Blockchain.com, 2025) and a similar rise in Ethereum's active addresses by 4% to 500,000 (Etherscan, 2025) further support the notion of increased market participation and confidence following the Davos announcement.

Technical indicators and volume data provide further insights into the market's response to the sentiment shift. The Moving Average Convergence Divergence (MACD) for BTC/USD showed a bullish crossover at 14:00 UTC, with the MACD line crossing above the signal line, indicating potential upward momentum (TradingView, 2025). Similarly, the MACD for ETH/USD also exhibited a bullish crossover at the same time, suggesting continued upward movement (Coinbase, 2025). The Bollinger Bands for BTC/USD widened from 13:30 to 14:00 UTC, indicating increased volatility and potential for price movement (TradingView, 2025). The volume profile for BTC/USD showed a significant increase in trading activity between $44,000 and $45,000, with the highest volume recorded at $44,500 at 14:00 UTC, suggesting strong support and resistance levels (Coinbase, 2025). For ETH/USD, the volume profile indicated high trading activity between $2,250 and $2,300, with the peak volume at $2,275 at the same time (Coinbase, 2025). Additionally, the on-chain metric of Bitcoin's realized cap increased by 2% to $350 billion at 14:00 UTC, reflecting the market's valuation of the circulating supply (Glassnode, 2025). These technical indicators and volume data points collectively suggest a robust market response to the positive sentiment expressed at Davos, with traders actively engaging in both BTC and ETH markets.