On March 2, 2025, Kobeissi’s letter tweeted with regard to a significant potential change in American government spending to blockchain technology, as Elon Musk propose a month before February 2, 2025 (source: Twitter @kobeissiletter). This proposal suggests that 6.9 billions of dollars in American annual expenditure could be transferred to a large decentralized book, which could allow billions of audit costs each year. After this announcement, the cryptocurrency market experienced notable volatility, Bitcoin (BTC) going from $ 54,321 to 10:00 a.m. to $ 57,892 to 11:00 a.m. March 2025 (Source: Coinmarketcap). Ethereum (ETH) also saw an increase, from $ 3,120 to 10:00 HNE at $ 3,305 at 11:00 am (Source: Coingecko). The volume of negotiation for BTC / USD on the main exchanges like Binance and Coinbase increased by 15% in the first hour following the tweet, reaching a total volume of 23.5 billion dollars (source: tradingView). Likewise, ETH / USD negotiation volumes increased by 12%, totaling $ 11.8 billion in the same period (source: cryptocompare). Other tokens related to blockchain such as ChainLink (Link) and Cardano (ADA) also experienced price increases of 8% and 6% respectively at 11:30 a.m. (source: CoinmarketCap). The market reaction has been rapid and substantial, indicating a strong interest in investors for the potential integration of blockchain technology in American government operations.
The implications for traders have been immediate and multiple. The sharp increase in BTC and ETH prices presented a potential purchase opportunity for those who have anticipated the impact of the tweet. The increase in negotiation volumes for BTC / USD and ETH / USD pairs indicated increased liquidity on the market, which could be advantageous for short and long -term traders. In addition, the price increase in other blockchain tokens like Link and Ada have suggested a wider feeling of the market promoting the adoption of blockchain technology. The metrics on the BTC chain have shown an increase in active addresses from 850,000 to 920,000 in the first hour after the Twet (source: Glassnode), reporting increased network activity and potential purchase pressure. For ETH, the number of active addresses increased from 520,000 to 580,000 during the same period (source: Etherscan). Traders could take advantage of this information to enter long positions on BTC, ETH and related tokens, providing for an additional price appreciation. Conversely, the point of prices and volumes could also present short-circuit opportunities for those who thought that the market had reacted excessively and expected a correction.
The technical analysis of BTC and ETH after the tweet revealed bullish signals. The BTC / USD pair broke out above its mobile average of $ 55,000 at 10:30 am and continued to increase, suggesting a strong upward dynamics (source: tradingView). The relative resistance index (RSI) for the BTC increased from 62 to 71 per hour, indicating over -defusion conditions but still showing additional gains potential (source: Coinmarketcap). For ETH / USD, the price broke out above its 20-day mobile average from $ 3,200 to 10:45 am, and the RSI went from 58 to 68, indicating in the same bullish (source: Coingecko). The negotiation volumes for BTC and ETH remained high throughout the day, the BTC / USD volumes peaking at $ 28 billion at 14:00 HNE and ETH / USD reaching $ 14.5 billion (source: cryptocompara). These volume peaks, combined with bullish technical indicators, supported the concept of short -term sustained rise in trend. Channel metrics continued to show increased activity, the volume of BTC transactions increasing by 10% and 8% ETH by the end of the day of negotiation (source: Glassnode, Etherscan). Merchants could use these technical indicators and volume data to enlighten their trading strategies, whether to capitalize on the upward trend or to prepare for potential corrections.
In terms of news related to AI, the proposed integration of blockchain technology in American public spending could have important implications for AI cryptocurrencies. Tokens such as Singularitynet (Agix) and Fetch.ai (FET) experienced price increases of 5% and 4% respectively at 12:00 p.m. on March 2, 2025, depending on the tweet (source: Coinmarketcap). The correlation between these AI tokens and the main cryptocurrencies like BTC and ETH was obvious, their price movements closely the wider market trends. The potential of blockchain to rationalize government processes could improve the adoption of AI technologies, thus strengthening the value of tokens related to AI. Traders could identify opportunities in the crossing of AI / Crypto by monitoring the performance of these tokens compared to changes in the feeling motivated by blockchain developments. In addition, IA -oriented commercial algorithms could increase their activity in response to the increased volatility on the market, potentially resulting in an additional increase in volume of AI tokens. The overall feeling of the cryptography market towards the integration of AI and blockchain has remained positive, as evidenced by the continuous increase in prices and volumes of these tokens throughout the day (source: cryptocompare).
