Market Update 9th January 2024
By Shikha Singh
The U.S. Department of Justice (DOJ) liquidated 69,000 BTC, valued at approximately $6.5 billion, from the Silk Road darknet marketplace, which contributed to Bitcoin’s recent struggles.
A federal judge ruled on Dec. 30 that the DOJ could sell these assets. Although the official liquidation process began on Jan. 8, discrepancies in transaction reporting led to speculation and confusion.
Bitcoin’s price, which briefly surpassed $102,000 earlier this week due to positive ETF inflows, has since plunged.
The latest jobs report triggered a rapid sell-off, sending BTC below $97,000 on Tuesday and further to $92,500 on Wednesday.
The ETF flows experienced a negative trend, with outflows of $600 million exacerbating the decline. As of Jan. 9, BTC is trading just above $93,000, with its market cap dropping to $1.85 trillion.
Altcoins are experiencing significant declines alongside Bitcoin. Cardano’s ADA has fallen 8.5% in 24 hours, dropping below $1.
Other tokens like DOGE, AVAX, LINK, and XLM have also suffered losses of up to 7%. AI16Z and WIF saw the most significant drops, falling 19% and 14%, respectively.
The cumulative market cap of all crypto assets has lost over $350 billion in two days, now sitting at $3.4 trillion.
Amid the market turmoil, U.S. entities have increased their share of global Bitcoin reserves, reaching an all-time high of 65% over non-U.S. entities.
This growth aligns with institutional interest and key events like Donald Trump’s re-election and his proposal for a national Bitcoin reserve.
Major U.S. players like MicroStrategy, which holds 447,470 BTC, and corporations like Thumzup Media and Solidion Technology continue to invest heavily in Bitcoin despite its recent volatility.
The trend has sparked global interest, with non-U.S. entities and governments, such as Japan’s Metaplanet, eyeing similar strategic reserves.
Despite recent setbacks, confidence in Bitcoin remains strong, supported by growing institutional and governmental adoption.
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