Bitcoin experienced a volatile 'drop and then rise' trading session on Friday (January 10), first hitting a low of $91,208 before rallying to $94,500. The U.S. government has been authorized to liquidate 69,370 Bitcoins seized from the Silk Road marketplace, valued at approximately $6.5 billion. U.S. media sources revealed that President Biden instructed the Justice Department to sell over 1,000 Bitcoins during the bull market. However, ahead of the weekend, positive news emerged as the U.S. Senate is set to establish its first cryptocurrency subcommittee, with elected President Trump considering appointing a new pro-cryptocurrency chair of the Commodity Futures Trading Commission (CFTC).

Black Swan event strikes: The U.S. government approved the sale of 69,370 Bitcoins.

The U.S. government has been authorized to liquidate 69,370 Bitcoins seized from the notorious Silk Road marketplace. Court documents show that U.S. Chief District Judge Richard Seeborg rejected a motion to block the seizure, allowing the Justice Department to continue selling the cryptocurrency.

According to data from on-chain tracking firm Arkham Intelligence, as of January 9, the U.S. government holds 198,000 Bitcoins, valued at approximately $18.5 billion, with the aforementioned $6.5 billion sale belonging to the same reserve.

Some analysts speculate that the outgoing Biden administration may decide to sell all government-held Bitcoins for political reasons before President-elect Trump takes office.

Fox Business contributor Jason Williams claimed that the Biden administration instructed the Justice Department to sell over 1,000 Bitcoins during the bull market at a selling price of $94,000. He stated, 'This is a blatant distortion of the government's fiduciary responsibility.'

He added, 'The Biden administration sold Bitcoins at about $94,000; what price will Trump have to pay to buy them back? Higher.'

Trump's two major announcements: Senate Cryptocurrency Subcommittee, pro-Bitcoin CFTC chair

Fox News prominent journalist Eleanor Terrett revealed on Thursday (January 9) that the U.S. Senate is about to establish its first subcommittee dedicated to cryptocurrency, confirming that Republican Senator Cynthia Lummis has been preliminarily selected as chair. She previously proposed the (Bitcoin Act), aimed at establishing a national Bitcoin strategic reserve for the U.S.

Eleanor wrote: 'Breaking news, the U.S. Senate Banking Committee is about to establish its first subcommittee dedicated to cryptocurrency. This subcommittee will be structured according to the Republican version of the House Financial Services Committee. A Senate aide confirmed that Lummis has been preliminarily selected as the subcommittee chair, pending a vote by the full committee.'

'I hear that the votes to approve Lummis and the new Republican and Democratic members (still being decided) will take place in the coming days,' she added.

Lummis's (Bitcoin bill) aims to establish a strategic Bitcoin reserve as an additional store of value to enhance the U.S. balance sheet and ensure transparent management of federal holdings in Bitcoin. Specifically, the bill will establish a decentralized network of secure Bitcoin vaults operated by the U.S. Treasury, ensuring the highest levels of physical and network security for national Bitcoin holdings as required by law.

Unchained reported on Thursday that five informed sources said CFTC commissioner Summer Mersinger has become the preferred choice to serve as the chair of the agency, as current CFTC chairman Rostin Behnam indicated he would resign after Trump takes office.

Mersinger replaces former CFTC commissioner and a16z policy chief Brian Quintenz in the role, as she is seen as a candidate likely to be approved by the Senate. She served as a staffer for Senate Majority Leader John Thune for 12 years.

As she is already a commissioner, Trump can appoint her as interim chair while the Senate reviews her appointment.

Mersinger has made statements in support of cryptocurrency; she expressed feeling 'uncomfortable' about the CFTC 'developing some policy through our enforcement cases' at the blockchain conference in November.

Trump will be inaugurated on January 20, with the Republican Party winning a majority in the Senate and retaining a majority in the House in the November elections, officially granting the Republicans full control of the government. The new Congress will begin operations on January 3.

Bitcoin Technical Analysis

Bitcoin's price fell by 9.47% from Tuesday to Thursday, closing below $92,552. On Friday, Bitcoin's price slightly rebounded after testing the 38.2% Fibonacci retracement level of $92,493 (from the low of $66,835 on November 4, 2024, to the high of $108,353 on December 17).

If Bitcoin continues to decline and closes below $92,493, it may extend its downward trend, testing the psychological level of $90,000. The relative strength index on the daily chart is at 43, below the neutral level of 50, indicating bearish momentum. Additionally, the moving average convergence divergence (MACD) indicator also showed a bearish crossover on Wednesday, suggesting a sell signal and downward trend.

However, if Bitcoin recovers and closes above $100,000, it may extend its upward trend and retest the historical high of $108,353 on December 17, 2024.