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Yesterday, the United States Department of Justice (DOJ) announced its clearance to sell 69,370 Bitcoin seized from the Silk Road darknet marketplace. This massive haul is currently valued at approximately $6.5 billion USD. Although the announcement was made yesterday, the federal judge's decision to approve the sale occurred on December 30th. The DOJ justified its move by pointing to Bitcoin's notorious price volatility.
This rush to liquidate the seized assets is hardly a coincidence. With President-elect Donald Trump set to take office in less than ten days, his administration has made it clear that they will not sell the seized Bitcoin. The sudden decision to proceed now by the current administration could be interpreted as a parting shot aimed at undermining Trump’s pro-Bitcoin stance.
The abrupt news has largely explained Bitcoin's latest correction, even as macroeconomic data showed stronger-than-expected employment numbers. While the JOLTS data released was solid, it’s historically insufficient to trigger the kind of sharp 10% decline that we saw in Bitcoin.
Over the last 24 hours, Bitcoin has experienced a steady sell-off, dropping 2.6% and reaching a low of $91.1k. The broader market has followed suit, with altcoins bearing the brunt of the losses. Interestingly, Bitcoin dominance has climbed back to 58%, suggesting that if markets continue to decline, this metric could rise further, potentially exceeding the 60% mark as altcoins bleed further.
This correction, fueled by FUD (fear, uncertainty, and doubt), is nothing new in crypto markets. However, the selling pressure is likely to be short-lived given the limited window for action. Once Trump assumes office, it’s probable that any unsold Bitcoin will remain untouched, effectively halting the sell-off. Until then, the market is bracing for potential volatility as the DOJ looks to offload its holdings.
Stormrake Spotlight: Hyperliquid (HYPE) ($20.70)
Stormrake Spotlight: Hyperliquid (HYPE) ($20.70)
HYPE, like the rest of the market, has been hit hard in this downturn. Overnight, the token dropped to a low of $18.3 but has since bounced back to its current price of $20.70. Despite the pullback, Hyperliquid remains one of the most anticipated and heavily supported projects of 2025. Once market conditions improve, HYPE is expected to lead the recovery and reaffirm its position as a top-performing asset.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin continues its decline and is trading just above the key support level at $92.5k. The bearish structure and momentum remain intact, as multiple attempts at a reversal have been rejected by the 21-EMA, which is acting as a strong resistance. If BTC finds support at $92.5k, we could see a bottom forming. However, if bearish momentum persists, Bitcoin could break below $90k in the near term.
BTC Total ETF Flows for 9 Jan: $ N/A (data not available)
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum continues to mirror Bitcoin’s price action, maintaining a bearish structure with downward momentum. ETH is currently holding above the key support level at $3,200 but remains under pressure. Similar to BTC, all recent rally attempts have been rejected at the 21-EMA. If ETH fails to hold $3,200, further downside could be in play.
ETH Total ETF Flows for 9 Jan: $ N/A (data not available)
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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