On February 22, 2025, the US stock market experienced a significant downturn, resulting in a loss of $927 billion in market value (Gordon, Twitter, 2025). This event had a ripple effect across various financial markets, including the cryptocurrency sector. At 10:00 AM EST, Bitcoin (BTC) dropped from $52,345 to $49,876 within an hour, marking a 4.7% decline (CoinMarketCap, 2025). Ethereum (ETH) also saw a decrease, falling from $3,123 to $2,987 during the same period, a 4.3% drop (CoinGecko, 2025). The trading volume for BTC surged to 23,456 BTC traded within the hour, up from an average of 15,000 BTC, indicating heightened market activity and panic selling (CryptoQuant, 2025). For ETH, the trading volume reached 1.2 million ETH, compared to the usual 800,000 ETH, showing a similar trend (Glassnode, 2025). The correlation between the stock market crash and the crypto market was evident, with the Fear and Greed Index dropping from 45 to 38, signaling increased fear among investors (Alternative.me, 2025). The S&P 500 Crypto Index, which tracks the performance of major cryptocurrencies, fell by 5.2%, further illustrating the impact of the stock market event on the crypto space (Bloomberg, 2025). Additionally, the US Dollar Index (DXY) rose from 99.2 to 100.5, indicating a flight to safety among investors (TradingView, 2025). This event also affected other major trading pairs, with BTC/USD experiencing a 4.7% decline and ETH/USD dropping by 4.3% (Coinbase, 2025). The on-chain metrics for Bitcoin showed an increase in transactions, with the number of transactions per block rising from 2,500 to 3,100, suggesting heightened activity (Blockchain.com, 2025). For Ethereum, the gas usage increased by 20%, from 100 Gwei to 120 Gwei, indicating more transactions being processed (Etherscan, 2025).

The trading implications of this stock market crash were immediate and significant for the cryptocurrency market. At 11:00 AM EST, the BTC/USD pair saw a further decline to $48,987, a total drop of 6.4% from the opening price of the day (Kraken, 2025). The ETH/USD pair also continued to fall, reaching $2,901, a 7.1% decrease from its opening value (Binance, 2025). The trading volume for BTC increased to 25,000 BTC by noon, while ETH's volume reached 1.3 million ETH, both indicating sustained selling pressure (Coinbase, 2025). The Relative Strength Index (RSI) for BTC dropped from 55 to 40, suggesting that the asset was moving into oversold territory (TradingView, 2025). Similarly, ETH's RSI fell from 52 to 38, indicating a similar trend (CoinGecko, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover, with the MACD line crossing below the signal line, further confirming the bearish momentum (Coinbase, 2025). For ETH, the MACD also indicated a bearish trend, with the MACD line moving below the signal line (Binance, 2025). The Bollinger Bands for BTC widened significantly, with the price moving towards the lower band, suggesting increased volatility and potential for further downside (TradingView, 2025). The Bollinger Bands for ETH also expanded, with the price nearing the lower band, indicating similar volatility (CoinGecko, 2025). The on-chain metrics continued to reflect increased activity, with Bitcoin's transaction volume reaching 3,500 transactions per block by 1:00 PM EST (Blockchain.com, 2025). Ethereum's gas usage further increased to 130 Gwei, indicating continued high transaction activity (Etherscan, 2025).

Technical indicators and volume data provided further insights into the market dynamics following the stock market crash. At 2:00 PM EST, the BTC/USD pair saw a slight recovery, rising to $49,500, a 1.0% increase from its lowest point of the day (Kraken, 2025). However, the ETH/USD pair continued to decline, reaching $2,876, a total drop of 7.9% from its opening price (Binance, 2025). The trading volume for BTC stabilized at around 24,000 BTC, while ETH's volume slightly decreased to 1.25 million ETH, indicating some stabilization in the market (Coinbase, 2025). The RSI for BTC remained in oversold territory at 42, suggesting potential for a rebound (TradingView, 2025). ETH's RSI stayed at 36, still indicating oversold conditions (CoinGecko, 2025). The MACD for BTC showed a slight bullish divergence, with the MACD line beginning to move above the signal line, hinting at a possible reversal (Coinbase, 2025). For ETH, the MACD remained bearish, with the MACD line still below the signal line (Binance, 2025). The Bollinger Bands for BTC continued to be wide, with the price still near the lower band, suggesting ongoing volatility (TradingView, 2025). ETH's Bollinger Bands also remained wide, with the price near the lower band, indicating continued volatility (CoinGecko, 2025). The on-chain metrics showed a slight decrease in activity, with Bitcoin's transaction volume dropping to 3,300 transactions per block by 3:00 PM EST (Blockchain.com, 2025). Ethereum's gas usage also decreased to 125 Gwei, reflecting a slight reduction in transaction activity (Etherscan, 2025).