PK Press Club–Bitcoin fell on Thursday, extending a string of steep losses as risk appetite was shaken by hawkish signals from the Federal Reserve, while the prospect of coin sales by the U.S. government also weighed.
At 07:30 ET (12:30 GMT), the stock fell 1.2% to $93,775.0, after falling to $92,540.0 earlier in the session.
The world’s largest cryptocurrency largely erased the new year’s rebound this week, tracking a broader decline in risk assets as traders braced for a slower pace of rate cuts in 2025.
Broader crypto prices also retreated, although Thursday’s losses were further skewed in favor of Bitcoin after reports indicated that the Justice Department received court approval to sell the confiscated coins on the Silk Road market.
DOJ Obtains Court Approval to Sell $6.5 Billion of Bitcoin
Media reported that the DOJ received court approval to sell approximately 69,370 Bitcoins seized during a 2014 crackdown on the Silk Road online black market.
The total value of the tokens stands at around $6.5 billion and represents strong selling pressure on the world’s largest cryptocurrency.
The DOJ has sold its confiscated crypto holdings in the past and was recently seen mobilizing its Bitcoin hoard for a potential sale. Coinbase (NASDAQ:) has a contract with the DOJ to manage government crypto sales.
The Bitcoin sale also dashed some hopes that the DOJ would convert its Bitcoin holdings into a strategic reserve under new President Donald Trump.
Trump has pledged to create a national Bitcoin reserve, although it is not yet clear how he will achieve this.
Crypto Price Today: Belligerent Fed Signals Hitting Crypto Markets
Prices of broader cryptocurrencies fell alongside Bitcoin as risk appetite was eroded by hawkish signals from the Fed.
Minutes from the central bank’s December meeting reiterated the Fed’s plan to cut interest rates at a slower pace in 2025, amid a resilient U.S. economy and concerns about a persistent inflation.
Policymakers have also expressed some concerns that inflation remains supported by Trump’s expansionary and protectionist policies, which could keep rates high for longer.
Higher rates bode ill for speculative assets such as cryptocurrencies, as they weigh on investors’ appetite for risk-oriented assets.
Among altcoins, it fell 1.1% to $3,305.80 after posting sharp losses earlier in the week. fell 0.8% to $2.3069, and fell during the session.
(Peter Nurse contributed to his article.)
