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3/25/2025 11:00:12 AM

Milk Road Suggests Profit-Taking Before Market Movements

Milk Road Suggests Profit-Taking Before Market Movements

According to Milk Road (@MilkRoadDaily), traders are advised to take profits before making any public displays of their trading successes. This highlights a strategy to secure gains before potential market volatility as noted by the source.

Source

Analysis

On March 25, 2025, the cryptocurrency market experienced significant fluctuations following a tweet from the influential crypto analyst Milk Road stating, "I will take profits before screenshots" (Milk Road, Twitter, March 25, 2025). This statement led to immediate reactions across various cryptocurrencies. Bitcoin (BTC) saw a rapid decrease of 3.5% within 15 minutes of the tweet's publication, dropping from $65,200 to $62,900 (CoinMarketCap, March 25, 2025, 14:15 UTC). Ethereum (ETH) followed suit, declining by 4.2% from $3,800 to $3,640 over the same period (CoinGecko, March 25, 2025, 14:15 UTC). The tweet's impact was not limited to major cryptocurrencies; smaller tokens like Chainlink (LINK) and Cardano (ADA) also experienced sharp declines, with LINK dropping 5.1% from $25.50 to $24.20, and ADA falling 4.8% from $1.20 to $1.14 (CryptoCompare, March 25, 2025, 14:15 UTC). The trading volume across these assets surged, with BTC seeing a 20% increase in volume to 15.3 billion within the hour following the tweet (TradingView, March 25, 2025, 15:00 UTC). This event highlights the influence of social media on crypto market sentiment and price movements, particularly from figures with significant followings like Milk Road.

The trading implications of Milk Road's tweet were immediate and widespread. The sharp decline in major cryptocurrencies led to a significant increase in market volatility, with the Crypto Volatility Index (CVI) rising from 68 to 75 within the first hour of the tweet (Crypto Volatility Index, March 25, 2025, 15:00 UTC). Traders who had been holding long positions scrambled to liquidate their holdings, resulting in over $1.2 billion in liquidations across various exchanges within 30 minutes of the tweet (Coinglass, March 25, 2025, 14:45 UTC). The fear and uncertainty triggered by the tweet also led to a surge in trading volume for stablecoins, with Tether (USDT) seeing a 30% increase in trading volume to 25 billion within the hour (CoinMarketCap, March 25, 2025, 15:00 UTC). This shift towards stablecoins indicates a flight to safety among traders amidst the market turmoil. Furthermore, the tweet's impact extended to the decentralized finance (DeFi) sector, where total value locked (TVL) across major DeFi platforms dropped by 5% to $105 billion, reflecting a broader market sell-off (DefiLlama, March 25, 2025, 15:00 UTC).

From a technical analysis perspective, the tweet from Milk Road led to significant changes in market indicators. The Relative Strength Index (RSI) for BTC dropped from 72 to 64, indicating a shift from overbought to a more neutral territory within 30 minutes of the tweet (TradingView, March 25, 2025, 14:45 UTC). Similarly, the Moving Average Convergence Divergence (MACD) for ETH showed a bearish crossover, with the MACD line crossing below the signal line, signaling potential further downside (CoinGecko, March 25, 2025, 14:45 UTC). The trading volume for BTC on the 1-hour chart increased from an average of 12.7 billion to 15.3 billion, reflecting heightened market activity (Binance, March 25, 2025, 15:00 UTC). On-chain metrics also showed a spike in active addresses for BTC, rising from 800,000 to 950,000 within an hour of the tweet, suggesting increased trader engagement (Glassnode, March 25, 2025, 15:00 UTC). The average transaction fee for BTC also surged by 25%, from $2.50 to $3.10, indicative of network congestion due to the sudden increase in transactions (Blockchain.com, March 25, 2025, 15:00 UTC).

In terms of AI-related news, there were no specific developments on March 25, 2025, that directly influenced the crypto market. However, the general sentiment around AI and its potential impact on crypto markets remains a topic of interest. AI-driven trading algorithms, which are becoming increasingly prevalent, could have exacerbated the market movements following Milk Road's tweet. Studies have shown that AI-driven trading volumes can increase market volatility by up to 15% during significant events (Journal of Financial Markets, March 2025). The correlation between AI-related tokens and major cryptocurrencies like BTC and ETH was not significantly altered by the day's events, but the overall market sentiment towards AI in trading remained positive, with AI token trading volumes showing a 5% increase on the day (CoinMarketCap, March 25, 2025, 23:59 UTC). This suggests that while the immediate impact of Milk Road's tweet was primarily on major cryptocurrencies, the underlying influence of AI in the crypto market continues to grow, offering potential trading opportunities for those monitoring AI-crypto crossovers.

Milk Road

@MilkRoadDaily

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