Bitcoin Holds Above $93,000 Amid $300 Billion Crypto Market Decline
The cryptocurrency market capitalization has decreased to under $3.2 trillion, losing over $300 billion since January 6. Bitcoin is currently priced above $93,000, showing a series of higher lows since December 30.
Confirmed reports suggest the U.S. government may liquidate approximately 69,370 BTC from the Silk Road seizure, amounting to $6.5 billion. This situation adds complexity as President-elect Trump has stated he will not sell any bitcoin held by U.S. authorities, which totals 187,236 BTC.
Key factors affecting the market include:
- DXY index remains above 109, indicating a strong U.S. dollar.
- U.S. treasury yields peaked at 4.73% before slightly retreating.
- Inflation concerns are driving selloffs across markets, with growth expectations impacting U.K. gilt yields.
The British pound has fallen to 1.22 against the dollar, marking a 4% decline over the past month. The U.S. stock market will be closed on January 9 for a national mourning day. Investors are awaiting the jobs report on January 10, with unemployment expected at 4.2% and nonfarm payroll estimated at 154,000. A strong report could further pressure risk assets.
Upcoming Events
Key crypto events include:
- January 9: Cronos zkEVM mainnet upgrades.
- January 12: Binance halts Fantom token deposits and withdrawals.
- January 15: Derive's token generation event.
- January 15: Mintlayer version 1.0.0 release with atomic swaps.
- January 16: Trading for Sonic token starts on Binance.
- January 10: U.S. Employment Situation Summary report released.
- January 14: PPI data released.
- January 16: U.K. GDP estimate published.
Market Movements
Current price movements show:
- BTC down 1.24% to $93,307.05.
- ETH up 0.23% to $3,307.13.
- CoinDesk 20 index down 1.18% to 3,954.73.
Annualized one-month basis in BTC and ETH CME futures has dropped to 6%-7%. ETH open interest is at a one-month low of $2.9 billion. Options market shows a bias towards BTC and ETH puts for shorter durations.
Token Events
Notable unlocks include:
- Aptos unlocking 1.13% of its circulating supply worth $98.85 million on January 11.
- Axie Infinity unlocking 1.45% worth $14.08 million on January 12.
- Arbitrum unlocking 0.93% worth $70.65 million on January 14.
Bitcoin ETFs experienced significant outflows, totaling $582 million, reflecting investor sentiment amid inflation risks. XRP shows potential for a 40% surge driven by optimistic market sentiment surrounding Trump's policies.