- The cryptocurrency market has faced significant turbulence, with Bitcoin dropping to $91,215, marking a 3% daily decline and a broader $420 billion loss in market value over the past month.
- Adding to the sell-off pressure are regional price disparities, U.S. Justice Department plans to liquidate $6 billion in Bitcoin, and heavy losses in both altcoins and derivatives markets.
The cryptocurrency market is experiencing a tumultuous start to 2025, with Bitcoin (BTC) plunging to an intraday low of $91,215 on January 9. This marks a 3% decline against the U.S. dollar over the past 24 hours, contributing to a broader market contraction of 2.5%. The crypto economy’s total valuation now stands at $3.22 trillion, following a $420 billion reduction over the past month.
Bitcoin Battles to Stay Above $90K
Bitcoin’s struggles to maintain its $90,000 level underscore the intense selling pressure that has gripped the market. The cryptocurrency giant has lost 5.5% of its value over the last week alone. Tether (USDT), a stablecoin pegged to the dollar, has become the dominant trading pair for Bitcoin, with a staggering $122 billion in trading volume in just 24 hours.
South Korean Premium Adds to Market Volatility
While Bitcoin’s global average price hovers around $91,877, South Korean investors on platforms like Upbit are paying a premium, with prices reaching $95,301. This “Kimchi premium” reflects localized demand, even as global markets trend downward. Meanwhile, the Coinbase Premium Gap, which measures the price difference between Coinbase and global exchanges, stands at a negative $23.98, further highlighting regional disparities.
U.S. Justice Department Liquidation Looms
Market anxiety has been exacerbated by news that the U.S. Justice Department is preparing to liquidate over $6 billion worth of Bitcoin. This impending move has heightened fears of oversupply, adding to the downward momentum.
Altcoins and Derivatives Take a Hit
The effects of Bitcoin’s decline have rippled through the broader crypto ecosystem. Solana (SOL), one of the top ten cryptocurrencies, experienced a steep 6.8% drop in the past day, making it the worst performer among its peers. In the derivatives market, over $372.44 million worth of cryptocurrency positions have been liquidated, with long positions accounting for $264.50 million of the total. Bitcoin longs alone contributed to $63 million of these losses.
Short-Term Holders Face Losses
Data from Cryptoquant reveals that approximately 36,400 Bitcoins were transferred from short-term holders to exchanges, with many being sold at a loss. Analyst Maartunn pointed out that the Spent Output Profit Ratio (SOPR) dropped below 1, signifying coins being moved at prices lower than their purchase value.
As of 7:19 p.m. EST, Bitcoin was trading at $92,671. With the market in flux, investors are bracing for further turbulence in the days ahead. The question remains: Will Bitcoin find stability, or is this the start of a deeper decline?