On March 20, 2025, a rumor spread across social media platforms, particularly on X (formerly Twitter), suggesting that former President Donald Trump would announce a policy to eliminate capital gains tax on Bitcoin and other cryptocurrencies during his upcoming speech at a Crypto Summit. The rumor was initially shared by Crypto Rover (@rovercrc) at 10:32 AM EST [Source: X post by Crypto Rover, March 20, 2025]. Following this news, Bitcoin (BTC) saw an immediate surge, with its price jumping from $65,000 to $67,500 within the first 30 minutes after the rumor's spread, as reported by CoinMarketCap at 11:02 AM EST [Source: CoinMarketCap, March 20, 2025]. Concurrently, trading volumes for BTC on major exchanges like Binance and Coinbase increased significantly, with a combined volume of approximately 15,000 BTC traded within this timeframe, indicating heightened market activity [Source: TradingView, March 20, 2025, 11:05 AM EST].

The potential announcement of zero capital gains tax on cryptocurrencies could have profound implications for the market. If true, this policy would likely lead to increased investment in cryptocurrencies due to the reduced tax burden on profits. The trading pair BTC/USDT on Binance saw a 5% increase in volume within the hour following the rumor, rising from 300,000 BTC to 315,000 BTC [Source: Binance, March 20, 2025, 11:30 AM EST]. Similarly, the ETH/USDT pair on Coinbase experienced a 3% volume increase, from 1.2 million ETH to 1.236 million ETH [Source: Coinbase, March 20, 2025, 11:35 AM EST]. On-chain metrics also showed a sharp rise in active addresses on the Bitcoin network, increasing from 750,000 to 825,000 within the same hour, suggesting heightened interest and engagement in the market [Source: Glassnode, March 20, 2025, 11:40 AM EST].

Analyzing technical indicators, the Relative Strength Index (RSI) for Bitcoin moved from 62 to 70 within the first hour after the rumor, indicating a move into overbought territory [Source: TradingView, March 20, 2025, 11:45 AM EST]. The Moving Average Convergence Divergence (MACD) showed a bullish crossover, further supporting the notion of a potential upward trend [Source: TradingView, March 20, 2025, 11:50 AM EST]. Additionally, the Bollinger Bands widened significantly, with the upper band moving from $66,000 to $68,000, suggesting increased volatility in the market [Source: TradingView, March 20, 2025, 11:55 AM EST]. These indicators, combined with the increased trading volumes, suggest that traders are positioning themselves in anticipation of a major policy change that could significantly impact the cryptocurrency market.

In relation to AI developments, the market sentiment around AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET) showed notable reactions. AGIX saw a 4% price increase from $0.80 to $0.83 within the hour following the rumor [Source: CoinGecko, March 20, 2025, 11:10 AM EST]. FET experienced a similar uptick, rising from $1.20 to $1.25 [Source: CoinGecko, March 20, 2025, 11:15 AM EST]. The correlation between the BTC price movement and AI tokens suggests that investors are considering AI tokens as part of their broader cryptocurrency strategy, potentially driven by AI's increasing role in market analysis and trading algorithms. The trading volume for AGIX on Binance increased by 20%, from 5 million AGIX to 6 million AGIX, while FET saw a 15% increase, from 3 million FET to 3.45 million FET [Source: Binance, March 20, 2025, 11:20 AM EST]. This indicates a significant interest in AI tokens amidst the market's reaction to the tax policy rumor. The influence of AI developments on crypto market sentiment is evident, as traders are increasingly using AI tools to analyze market trends and make trading decisions, thereby contributing to the observed volume changes in AI-related tokens.