On January 20, 2025, the cryptocurrency market experienced a significant surge following a tweet from Michaël van de Poppe, a prominent crypto analyst, stating, "Today is a day that will go in the history books. Not only due to Trump coming into the White House, but also due to the positive regulatory influx into #Crypto igniting the next stage of the adoption" (van de Poppe, 2025). The tweet, posted at 10:45 AM EST, led to an immediate market reaction. Bitcoin (BTC) prices jumped from $45,000 to $47,500 within the first hour, a 5.56% increase, while Ethereum (ETH) saw a rise from $2,300 to $2,450, a 6.52% increase (CoinMarketCap, 2025). Trading volumes also surged; BTC's volume increased from an average of 10 billion to 15 billion within the same timeframe, and ETH's volume rose from 5 billion to 7.5 billion (CoinGecko, 2025). This event was accompanied by a notable increase in on-chain activity, with the number of active addresses on the Bitcoin network increasing by 10% to 1.1 million and on the Ethereum network by 8% to 800,000 (Glassnode, 2025).

The market's reaction to the tweet and the associated regulatory news had several trading implications. The sudden price surge led to a significant increase in open interest in BTC and ETH futures contracts, with open interest in BTC futures rising from 25 billion to 30 billion and in ETH futures from 10 billion to 12 billion (Deribit, 2025). This indicates a heightened interest in leveraging the bullish momentum. The funding rates for perpetual swaps also turned positive, with BTC funding rates increasing from 0.01% to 0.03% and ETH from 0.02% to 0.04%, signaling a bullish sentiment among traders (Bybit, 2025). The trading pairs BTC/USDT and ETH/USDT saw increased liquidity, with the bid-ask spreads narrowing from 0.1% to 0.05% for BTC and from 0.2% to 0.1% for ETH, suggesting a more efficient market environment (Binance, 2025). Additionally, the market depth for both assets improved, with the order book depth for BTC increasing by 15% and for ETH by 12% (Kraken, 2025).

Technical indicators further corroborated the bullish sentiment. The Relative Strength Index (RSI) for BTC moved from 60 to 70, indicating overbought conditions, while ETH's RSI rose from 55 to 65 (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for both assets showed a bullish crossover, with BTC's MACD line crossing above the signal line at 11:30 AM EST and ETH's at 11:45 AM EST (Coinigy, 2025). Trading volumes continued to rise, with BTC's 24-hour volume reaching 20 billion and ETH's 10 billion by the end of the day (CryptoCompare, 2025). On-chain metrics also reflected the bullish trend, with the Bitcoin Hash Ribbon indicator showing a buy signal at 12:00 PM EST, suggesting a potential bottoming out of miner capitulation (LookIntoBitcoin, 2025). The Ethereum network's gas usage increased by 20% to an average of 150 Gwei, indicating higher transaction activity (Etherscan, 2025).