3 Reasons Behind Bitcoin's Decline on January 9, 2025

The total cryptocurrency market capitalization dropped 3.5% to $3.4 trillion, and Bitcoin’s price fell to $94,000 on January 8, 2025. By the following day, the market cap had shrunk further to $3.1 trillion.

  1. DOJ Bitcoin Sale: The U.S. DOJ announced plans to sell 69,370 seized Bitcoins worth $6.5 billion, sparking investor outrage amid rumors the sale happened earlier at peak prices.
  2. Fed Rate Cuts: Lower interest rates led investors to pull out of high-risk assets like Bitcoin, adding to the decline.
  3. Profit-Taking: After a strong rally in late 2024, with Bitcoin hitting $108,000, widespread profit-taking drove prices down.

Geopolitical tensions, including controversial statements from President-elect Donald Trump, further fueled market volatility.

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Big moves happening in the market, but all this profit-taking makes sense after such a strong 2024.