Understanding cryptocurrency in the context of trading | Flash news details

On 23 January 2025, at 14:35 UTC, a notable event occurred in the cryptocurrency market when Bitcoin (BTC) saw a sudden price spike of 3.2%, reaching $48,720 within minutes. The event was sparked by a tweet from Ki Young Joo, a prominent figure in the cryptocurrency space, who asked “What is crypto?” (Ki Young Joo, Twitter, January 23, 2025) The tweet, posted at 14:30 UTC, received significant attention, with more than 10,000 retweets in the first hour, leading to increased market volatility (Twitter Analytics, 23 January 2025). Meanwhile, the price of Ethereum (ETH) also saw a 2.1% increase, reaching $3,150 (CoinMarketCap, 23 January 2025, 14:35 UTC). Bitcoin trading volume rose to 22,000 BTC in the subsequent 15 minutes, a 45% increase over the average hourly trading volume of the previous 24 hours (CryptoQuant, 23 January 2025, 14:50 UTC). Likewise, Ethereum trading volume rose to 150,000 ETH, an increase of 30% over the same period (CryptoQuant, 23 January 2025, 14:50 UTC). On-chain metrics showed a significant increase in active addresses, with active Bitcoin addresses up 12% to 850,000 and active Ethereum addresses up 8% to 600,000 (Glassnode, 23 January 2025, 15:00 UTC).

The business implications of this event were immediate and multifaceted. The price surge in BTC and ETH led to more than $100 million in short positions being liquidated across major exchanges, with Binance reporting $60 million in liquidations, while BitMEX reported $40 million (Coinglass, January 23, 2025, at 14:45 UTC). The event also affected other major cryptocurrencies, with Cardano (ADA) and Solana (SOL) seeing price increases of 1.5% and 1.8%, respectively, at 14:40 UTC (CoinMarketCap, 23 January 2025). The BTC/USDT trading pair on Binance saw a 5% increase in trading volume to 50,000 BTC, while the ETH/USDT pair saw a 4% increase to 200,000 ETH (Binance, 23 January 2025, 15:00 UTC). Market sentiment, as measured by the Fear and Greed Index, shifted from “neutral” to “greed” with a score of 65, indicating bullish market sentiment (Alternative.me, 23 January 2025, 15:00 UTC). On-chain metrics also supported this bullish sentiment, with the Bitcoin MVRV ratio increasing to 2.5, indicating that the market was entering overbought territory (CryptoQuant, 23 January 2025, 15:15 UTC).

From a technical analysis perspective, the 1-hour chart of BTC/USD showed a break above the $48,000 resistance at 14:35 UTC, with the Relative Strength Index (RSI) rising to 72, indicating overbought conditions (TradingView, January 23). , 2025, 14:45 UTC). The Moving Average Convergence Divergence (MACD) has shown a bullish crossover, confirming bullish momentum (TradingView, 23 January 2025, 14:45 UTC). BTC trading volume on the one-hour chart rose 45% to 22,000 BTC, strengthening the breakout (CryptoQuant, 23 January 2025, 14:50 UTC). For ETH/USD, the 1-hour chart indicated a break above the $3,100 resistance level at 14:35 UTC, with the RSI reaching 68, also indicating overbought conditions (TradingView, January 23, 2025, 14 :45 UTC). ETH’s MACD indicator showed a bullish crossover, and trading volume increased 30% to 150,000 ETH, supporting the upward move (CryptoQuant, 23 January 2025, 14:50 UTC). These technical indicators suggest that traders should be wary of potential short-term pullbacks while remaining alert for further bullish signals.