This Week's Highlights
The U.S. Department of Justice will auction off $6.5 billion worth of Bitcoin.
The U.S. Department of Justice will auction off $6.5 billion worth of Bitcoin, which comes from the seizure of the 'Silk Road' platform. This decision is based on the court ruling from December 30, which ended a long legal dispute over Bitcoin ownership.
As of January 9, the U.S. government holds 198,000 Bitcoins, valued at approximately $18.5 billion, with $6.5 billion being part of that total. Some analysts believe that the Biden administration may sell all government-held Bitcoins for political motives before Trump takes office.
Fox Business Channel contributor Jason Williams stated that the Biden administration instructed the Department of Justice to sell Bitcoin during the bull market, fully aware that the Trump administration might repurchase these Bitcoins at a higher price. He called this move an 'obvious distortion of government trust responsibilities.'
Impact of Trump's inauguration on cryptocurrency prices is mixed.
Although Trump's presidential inauguration is scheduled for January 20, which is expected to be positive news for the cryptocurrency industry, delays in the implementation of crypto regulation may dampen investor sentiment and lead to a decline in valuations.
BitMEX co-founder Arthur Hayes pointed out, 'The market will soon realize that there is at most one year to change policies after Trump takes office. This reality will trigger a sharp sell-off in cryptocurrencies and other Trump 2.0 stocks.'
Nevertheless, analysts remain optimistic about Bitcoin's price trend, with some expecting that by the end of 2025, Bitcoin's cyclical peak will exceed $150,000. This prediction is based on a global money supply increase of $20 trillion, which could attract $2 trillion in investment into Bitcoin.
Market Analysis
Bitcoin (BTC)
Affected by news of the U.S. Department of Justice selling Bitcoin, the price of Bitcoin has declined and broken below the support level of 92,000. The current market is forming a head and shoulders pattern, with the price oscillating between the support range of 92,000 and the resistance range of 98,000. If the price breaks through either of these key levels, it will confirm a new trend direction. The trading volume was low during previous price highs and high during lows, indicating a lack of upward momentum in the market. Meanwhile, the volume balance has turned negative, further weakening the current price trend and increasing the risk of a breakdown.
Ethereum (ETH)
Ethereum fell below the breakout level of $3,555 on January 7, indicating that the breakout of the ascending triangle on January 3 might be a bull trap. Sellers pushed the price below the ascending trend line, causing the triangle pattern to fail, and this failure of the bullish setup signals a bearish indication. The ETH/USDT trading pair may drop to $3,102 and further down to $3,000. Buyers are expected to fiercely defend the $3,000 to $2,850 range.
Any rebound may face selling pressure at the moving average. Bulls need to break through the 50-day simple moving average ($3,576) to confirm the rebound signal.
