Bitcoin (BTC) Extends Losses After DOJ Receives Court Approval to Sell 69,370 BTC Seized From Silk Road

Bitcoin extended its losses Thursday, falling 1.2% to $93,775.0 at 07:30 ET (12:30 GMT), with an earlier low of $92,540.0. This marked a sharp reversal from its New Year rally

Bitcoin fell further Thursday morning, extending losses from the New Year rally as risk appetite waned amid signals from the Federal Reserve that it may not cut rates as quickly as hoped in 2025.

The world’s largest cryptocurrency fell 1.2% to $93,775.0 by 07:30 ET (12:30 GMT), after hitting an earlier low of $92,540.0.

The sharp decline came as reports emerged that the U.S. Department of Justice (DOJ) had received court approval to sell 69,370 Bitcoin, valued at around $6.5 billion, that were seized from the Silk Road marketplace in 2014.

The sales will put a significant strain on the market, as similar sell-offs in the past have led to a dampening of prices.

Coinbase will handle these transactions, as part of its agreement with the DOJ.

The move also dashed speculation that the DOJ may convert its Bitcoin holdings into a strategic reserve under incoming President Donald Trump.

While Trump has proposed the creation of a national Bitcoin reserve, details of the plan remain unclear.

Broader cryptocurrency markets followed suit, with ether slipping 1.1% to $3,305.80 and XRP declining 0.8% to $2.3069.

Solana, cardano, and Polygon also posted losses, underscoring a broader decline in risk appetite.

Minutes from the Fed’s December meeting showed that officials planned a slower pace of rate cuts in 2025, citing economic resilience and sticky inflation.

Policymakers expressed concerns that the Trump administration’s expansionary policies may continue to stoke inflationary pressures, keeping rates higher.

Elevated interest rates tend to hurt speculative assets such as cryptocurrencies by reducing traders’ appetite for risk.

The prospect of continued rate hikes, together with the DOJ’s Bitcoin sales, created a challenging environment for crypto traders, highlighting the market’s sensitivity to regulatory and macroeconomic shifts.