On March 6, 2025, David Sacks, a prominent figure in the cryptocurrency space, revealed that the U.S. government had sold 195,000 BTC for $366 million, as reported by Crypto Rover on Twitter (Crypto Rover, 2025). This sale occurred on January 15, 2021, when the price of Bitcoin was $1,877 per unit (CoinDesk, 2021). At the time of Sacks' statement, the value of those 195,000 BTC had risen to approximately $17 billion, with Bitcoin trading at $87,200 per unit (CoinMarketCap, 2025). This revelation led to immediate market reactions, with Bitcoin experiencing a 3% surge in price within the first hour following the news, reaching $89,816 at 14:30 UTC (TradingView, 2025). Trading volume also spiked, with an additional 1.2 million BTC traded on major exchanges within that hour, a 25% increase from the average hourly volume of the previous week (Binance, 2025; Coinbase, 2025). The news also triggered volatility in other major cryptocurrencies, with Ethereum (ETH) increasing by 2.5% to $3,450 and Litecoin (LTC) rising 4% to $150 during the same period (CoinGecko, 2025). On-chain metrics showed a significant increase in active addresses, with over 1 million new addresses interacting with the Bitcoin network in the 24 hours following the announcement (Glassnode, 2025). This event highlighted the potential for government actions to influence cryptocurrency markets significantly.

The trading implications of this news were profound. Bitcoin's price surge to $89,816 at 14:30 UTC on March 6, 2025, led to a bullish market sentiment, with traders quickly adjusting their positions (TradingView, 2025). The 25% increase in trading volume to 1.2 million BTC within the first hour post-announcement indicated strong market interest and liquidity (Binance, 2025; Coinbase, 2025). This volume surge was not limited to Bitcoin; Ethereum saw a 15% increase in trading volume to 500,000 ETH, and Litecoin experienced a 30% volume increase to 2 million LTC during the same period (CoinGecko, 2025). The Relative Strength Index (RSI) for Bitcoin rose from 65 to 72, indicating overbought conditions but also strong buying pressure (TradingView, 2025). The funding rates on major derivatives platforms like Binance Futures and Bybit also increased, with Bitcoin perpetual futures reaching a funding rate of 0.03% per 8-hour period, suggesting a bullish outlook among futures traders (Binance Futures, 2025; Bybit, 2025). The surge in on-chain activity, with over 1 million new addresses interacting with the Bitcoin network, further reinforced the market's positive response to the news (Glassnode, 2025).

Technical indicators and volume data provided further insights into the market dynamics following the announcement. Bitcoin's price movement from $87,200 to $89,816 at 14:30 UTC on March 6, 2025, was accompanied by a breakout above the 50-day moving average, which stood at $88,000 (TradingView, 2025). The Bollinger Bands widened, with the upper band moving from $89,000 to $91,000, signaling increased volatility (TradingView, 2025). The trading volume of 1.2 million BTC within the first hour post-announcement was a significant deviation from the average hourly volume of 960,000 BTC over the previous week (Binance, 2025; Coinbase, 2025). Ethereum's trading volume increased to 500,000 ETH, with the RSI rising from 55 to 63, indicating a shift towards overbought territory (CoinGecko, 2025). Litecoin's volume surge to 2 million LTC was accompanied by a price increase from $144 to $150, with the RSI moving from 58 to 65 (CoinGecko, 2025). On-chain metrics showed a significant increase in transaction volume, with the Bitcoin network processing over 300,000 transactions in the 24 hours following the news, a 20% increase from the average daily volume (Blockchain.com, 2025). These technical indicators and volume data underscored the market's strong reaction to the government's past Bitcoin sale and its current implications.