In the past week, significant events in the crypto world unfolded. Here’s a breakdown of weekly recap explained in straightforward terms to keep everyone informed.
Bitcoin Sales from U.S. Department of Justice
The U.S. Department of Justice received court approval to sell 69,370 bitcoins, worth approximately $6.5 billion, seized from Silk Road. These assets will be converted into cash and sent to the U.S. Treasury. Typically, such sales are executed through Coinbase Prime at the start of the month. There are concerns that selling such a large amount could cause Bitcoin prices to drop sharply if not handled carefully. A poorly executed sale could cause a market crash, similar to what happened in Germany in 2024. However, historically, Bitcoin has recovered strongly after such liquidations.
Some questions remain: Why was there a delay? The order was issued on December 30, and the Department of Justice had five business days to act. There’s also speculation about whether the new administration’s stance on Bitcoin is playing a role. The new leadership had promised not to sell Bitcoin. Is there a change in policy? Short-term uncertainty looms, but there are strong long-term opportunities.
Analysts believe the sale might not happen immediately and suggest it could be another round of fear, uncertainty, and doubt (FUD) aimed at shaking the market. Some wonder why the department wouldn’t wait for 11 more days, considering Donald Trump’s incoming presidency might shift the approach entirely.
Whales Accumulate Bitcoin
Despite the market’s downturn in December, large investors, known as “whales,” have bought over 34,000 bitcoins according to Blocktrends. This significant accumulation could create strong buying pressure, helping the Bitcoin price recover.
Source | CryptoQuant
Mark Cuban’s View on Bitcoin
Billionaire Mark Cuban stated that he prefers Bitcoin over gold. He believes Bitcoin is easier to use in small transactions and more portable in case of economic problems. According to him, Bitcoin holds more value than gold.
ETFs Sell Bitcoin and Ethereum
On January 8, Exchange-Traded Funds (ETFs) sold about 5,870 bitcoins and 47,170 ether. The net outflows from Bitcoin funds amounted to $568.8 million, while Ethereum funds saw outflows of $159 million. Notably, BlackRock was among the sellers. This raises concerns about potential market impacts.
Source | Farside
Donald Trump Launches Bitcoin Trading Cards
President-elect Donald Trump launched new Bitcoin trading cards using the Ordinals network. This move highlights his ongoing support for cryptocurrency.
Source | Ordinals
Demand for Bitcoin Remains High
According to @ki_young_ju on X, Despite price drops, demand for Bitcoin remains strong. Market momentum continues, suggesting potential recovery in the near future.
Source | CryptoQuant
U.S. Jobless Claims Report
The latest report showed a positive drop in jobless claims, with the number falling to 201,000 from a previous estimate of 213,000. This news boosted the U.S. dollar, slightly bearish for the market.
Legal Updates from the SEC
Senator Cynthia Lummis met with SEC chair candidate Paul Atkins to discuss digital asset regulations. She hinted at possible changes by joking about putting the SEC on an “Atkins diet,” suggesting a significant reform.
In a separate case, Judge Katherine Villa paused the SEC’s lawsuit against Coinbase, citing inconsistent rulings on the legal status of cryptocurrencies. This move is seen as a positive development for the crypto industry.
Bhutan Embraces Crypto
The city of Gelephu Mindfulness in Bhutan announced plans to include Bitcoin, Ethereum, and BNB in its strategic reserves. This makes it one of the first regions to adopt digital assets as part of its financial strategy.
Federal Reserve Policy
According to FEDWatch, There’s less than a 5% chance that the Federal Reserve will cut interest rates this month. While this is negative for markets in the short term, it’s not expected to have a long-term impact.
Source | FEDWatch
JPMorgan Changes Its Stance on Bitcoin
JPMorgan’s view on Bitcoin has changed significantly over the years. In 2017, the company’s CEO called Bitcoin a “fraud.” By 2021, they published educational materials on crypto. Now, in January 2025, JPMorgan recognizes Bitcoin and gold as essential elements in investment portfolios. This shift shows how traditional financial institutions are increasingly accepting cryptocurrencies.
Canadian Politics and Crypto
Pierre Poilievre, the frontrunner for Canada’s prime minister position, promised to turn Canada into a global crypto capital. He believes Bitcoin can help Canadians protect themselves from inflation.
Metaplanet Increases Bitcoin Holdings
Metaplanet, a company led by CEO Simon Gerovich, announced plans to increase its Bitcoin holdings fivefold to reach 10,000 bitcoins by the end of 2025.
Fears of Slower Bitcoin Rally
Markus Thielen, founder of 10x Research, warned that the Bitcoin rally driven by Trump’s support might slow down as the Federal Open Market Committee (FOMC) meeting approaches on January 29.
Source | 10xResearch
Ethereum Founder’s AI Warning
Vitalik Buterin, co-founder of Ethereum, suggested a global pause on computing power to slow the development of dangerous forms of artificial intelligence.
Base Network Surges
@milesdeutscher points out that Base chain saw massive growth, surpassing Solana in network activity. While Base doesn’t have its own token, investors are exploring other projects within its ecosystem.
Source | Defillama
Oklahoma Pushes for Bitcoin Salaries
Oklahoma proposed legislation to allow state employees to receive salaries in Bitcoin. This move highlights the growing acceptance of Bitcoin as a hedge against inflation.
Fear and Greed Index Drops
The crypto Fear and Greed Index fell to 50, the lowest since mid-October, after Bitcoin prices dropped below $92,000. This metric indicates market sentiment.
Source | alternative.me
Federal Reserve Stays Neutral
Federal Reserve officials are adopting a wait-and-see approach as they await more clarity from Donald Trump’s administration, which could significantly change U.S. monetary policy.
Summary
This week highlighted a mix of challenges and opportunities in the crypto space. While short-term uncertainties persist, the long-term outlook for Bitcoin and other cryptocurrencies remains strong.
This article is not financial advice. Always DYOR (do your own research). Check out our blog for more insight at blog.millionero.com, and when you’re ready, trade spot and perps on millionero.com.