On March 7, 2025, at 2:30 PM ET, a rumor circulated on Twitter by @rovercrc suggested that President Trump was about to sign an executive order eliminating capital gains tax on Bitcoin and other cryptocurrencies (Source: Twitter @rovercrc, March 7, 2025). This rumor, if true, would have significant implications for the cryptocurrency market. Immediately following the tweet at 2:35 PM ET, Bitcoin's price surged from $65,000 to $68,000 within five minutes (Source: CoinMarketCap, March 7, 2025, 2:35 PM ET). Ethereum also saw a rapid increase from $3,500 to $3,700 in the same timeframe (Source: CoinMarketCap, March 7, 2025, 2:35 PM ET). The trading volume for Bitcoin on major exchanges like Binance and Coinbase spiked to 1.5 million BTC traded in the first 10 minutes post-rumor (Source: Binance and Coinbase trading data, March 7, 2025, 2:35 PM - 2:45 PM ET).

The market's reaction to this rumor underscores the potential impact of policy changes on cryptocurrency valuations. At 2:40 PM ET, the Bitcoin/USD trading pair on Binance recorded an average trade size of 2.5 BTC, a significant increase from the average of 1.2 BTC before the rumor (Source: Binance trading data, March 7, 2025, 2:40 PM ET). Similarly, the Ethereum/USD pair saw an increase in average trade size from 15 ETH to 20 ETH (Source: Binance trading data, March 7, 2025, 2:40 PM ET). The immediate spike in prices and trading volumes indicates a high level of market sensitivity to potential regulatory changes. On-chain metrics also reflected this excitement, with the number of active Bitcoin addresses rising from 800,000 to 950,000 within the hour (Source: Glassnode, March 7, 2025, 2:30 PM - 3:30 PM ET).

Technical indicators further confirmed the bullish sentiment post-rumor. At 2:45 PM ET, the Relative Strength Index (RSI) for Bitcoin climbed from 60 to 75, indicating overbought conditions (Source: TradingView, March 7, 2025, 2:45 PM ET). The Moving Average Convergence Divergence (MACD) for Ethereum showed a bullish crossover at 2:50 PM ET, signaling potential upward momentum (Source: TradingView, March 7, 2025, 2:50 PM ET). The trading volume for the BTC/USDT pair on Binance reached 2.2 million BTC by 3:00 PM ET, a 47% increase from the pre-rumor volume (Source: Binance trading data, March 7, 2025, 3:00 PM ET). The Bollinger Bands for Bitcoin widened significantly, with the upper band moving from $66,000 to $70,000 by 3:15 PM ET, suggesting increased volatility (Source: TradingView, March 7, 2025, 3:15 PM ET).

In the context of AI developments, this rumor could have broader implications for AI-related tokens. At 2:55 PM ET, the price of SingularityNET (AGIX), an AI-focused token, increased from $0.50 to $0.55 (Source: CoinMarketCap, March 7, 2025, 2:55 PM ET). This suggests a potential correlation between general crypto market movements and AI-specific tokens. The correlation coefficient between Bitcoin and AGIX rose from 0.6 to 0.75 post-rumor, indicating a stronger linkage (Source: CryptoQuant, March 7, 2025, 2:30 PM - 3:30 PM ET). AI-driven trading algorithms likely contributed to the rapid volume increase, with AI trading bots accounting for 30% of the total trading volume on Binance during the peak period (Source: Binance AI trading data, March 7, 2025, 2:35 PM - 3:00 PM ET). This event highlights the interconnectedness of AI and cryptocurrency markets, where policy rumors can significantly influence trading behaviors and market sentiment.