Bitcoin Holds Strong

Jan 10, 2025

Happy Friday,
After a drawdown to the $91k level, Bitcoin has jumped back to $94k, refusing to go down further despite a supply shock from the US DoJ. Ethereum, however, seems weaker, along with top altcoins like XRP and Solana. In the broader markets, AI agents have gained good traction, and AI agent protocols like VIRTUAL are receiving almost all of the attention.
Yesterday, the minutes released from the US Fed meeting increased the fear of zero rate cuts in 2025. Such a scenario could choke liquidity in the crypto markets.

Crypto Market Outlook

● Despite seeing a $6.5 billion BTC flood the crypto markets, Bitcoin's price has not budged below $91k, which has now become solid support. At press time, Bitcoin was trading at $94k, shedding all the previous day's losses.

● However, Ethereum seems much weaker at $3200. Despite almost gaining $400 levels last month, followed by major liquidity inflows in its ETFs, Ethereum crashed around 30% from its last month's highs.

● The price of XRP, however, has got stuck in a tight spot. After supporting Kamala Harris during the US elections, Ripple CEO Garlinghouse has now contributed $5 million to Trump’s inaugural fund, hoping to secure some relief from the SEC.

● AI agents have lately taken the crypto markets by storm, with protocols like VIRTUAL seeing more than 6000% growth in the last quarter.

● As the crypto markets churn this quarter, we might see newer trends and sectors like RWA and AI taking over the markets.

● On the macroeconomic front, we could see further troubles for the crypto markets as the US Federal Reserve seems to plan for zero rate cuts in 2025.

Crypto Market Overview

Despite the recent shocks of the DoJ Bitcoin sale, Fed minutes, and corrections, crypto markets seem to remain strong. At press time, the crypto market cap is at $3.28 trillion, still in bullish territory. We might see rallies continue in 2025 as the markets seem resilient to drawdowns.

However, the crypto market sees Bitcoin increasing its dominance to 56.8% while Ethereum's dominance has fallen to 12% today. As we advance, we could see Ethereum dominating a larger market cap only if it breaks out of $4000.

The altcoin season, too, has seen slow progress. Currently, the Altcoin Season Index has a score of 44/100, which is in the neutral zone. Without altcoin ETF approvals like XRP and Solana, we might not see a more intense altcoin season this year.

This week, the Crypto Fear and Greed Index has fallen further down to 43, which is very close to bearish territory. This fall was caused due to a sudden Bitcoin sale by the US DOJ.

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Market Watch

Biden Dumps $6.5B Bitcoin Days Before Trump Takes Over—Last Anti-Crypto Move?

● The US Department of Justice has cleared off the sale of $6.5 billion worth of Bitcoins seized from the Silk Road.

● After the sale, the US government will hold approximately $12 billion worth of Bitcoins.

● The decision to sell Bitcoins by the Biden administration is the complete opposite of Donald Trump's policy to use Bitcoin for US Strategic Reserves.

● Investment in Bitcoin could reduce the US National Debt by 36%.

Ethereum Price: Whales Scoop Up 168K ETH Amid 9% Intraday Crash

● Ethereum has crashed 9% on intraday charts.

● Risks are high for a collapse below $3000 levels.

● Expert predictions indicate a move above $10k.

● Ethereum is headed above $4000 on a short-term basis.

5 Cryptos To Keep an Eye on This Week

● The global Crypto market cap has risen by 4% over the past week to $3.48 trillion, with a trading volume of $87 billion in the last 24 hours.

● AIOZ faces price resistances around $1.12 and $1.41, with a possible upswing towards the $2 price level.

● PENGU has possible targets of $0.048, $0.0542, and $0.0639 and is trading within an ascending channel.

● MOVE shows a textbook cup-and-handle pattern that could reach $1.24 before consolidating and aiming for higher levels.

● Ethena is poised to break its $1.52 all-time high, while Arbitrum is eyeing a breakout to $2.5 after breaching $1.24.

News and Insights

Top Crypto News: Do Kwon’s Extradition, Tesla Bombing & a $1M Scam Lawsuit

● Terraform Labs co-founder Do Kwon, who was arrested in Montenegro in 2023, has been extradited to the US, pleading "not guilty" on 2 January.

● Authorities are probing a Tesla Cybertruck explosion outside the Trump International Hotel in Las Vegas, which killed the driver and injured seven.

● December 2024 saw the year's lowest Crypto losses, with $28.6 million stolen—a 71% decrease from November.

● A California man is suing three Asian banks—DBS Bank, Fubon Bank, and Chong Hing Bank—for failing to protect him from a $1 million pig-butchering scam.

● The US now holds over 40% of the global Bitcoin hash rate thanks to mining pools Foundry USA and MARA Pool.

How Criminals Are Targeting Crypto Investors in 2025: AI Romance Scams & Rising Kidnappings

● Crypto criminals are becoming bolder lately, with an increasing number of crimes on and off the internet.

● Hong Kong Police dismantled a Crypto crime syndicate that used fake personas of rich, single women to scam victims.

● A Canadian Crypto forum moderator narrowly escaped a kidnapping attempt after being targeted because of his alleged Bitcoin holdings.

● There have been nearly 200 violent Crypto crimes between 2014 and 2024, according to Jameson Lopp.

● Global collaboration among law enforcement agencies remains key to combating this issue.

3 Key Bitcoin Developments to Watch This Week

● The new year is only a few days in, and a lot is happening in the Crypto market.

● Some of the most significant developments for the week include a growth in Crypto ETPs between 2024 and 2025.

● MicroStrategy now holds more than $45 billion worth of Bitcoin after buying +1,000 more $BTC in the last two days of 2024.

● CryptoQuant analysts believe that the Crypto market is close to its final bull run days.

● Analysts from in and outside CryptoQuant expect a market peak between mid to late 2025.