Bitcoin’s price took a sharp tumble below $95,000 on 8 January, reversing gains from earlier in the week when it briefly surpassed $100,000. The sell-off was largely driven by short-term holders (STHs), who moved over 26,000 BTC worth more than $2.4 billion to exchanges, often at a loss.
According to analysis from Alphractal, STHs have shown a growing tendency to liquidate their holdings rather than accumulate, a trend evident since early December. This shift has weakened demand and amplified Bitcoin’s price volatility in recent weeks.
The data highlights how short-term investor behaviour continues to play a pivotal role in shaping Bitcoin’s market trends, as their decisions ripple across the broader cryptocurrency landscape.
A High Court judge has dismissed a legal challenge by James Howells, who sought to recover a Bitcoin hard drive worth nearly £600 million from a Newport landfill. Howells claimed his former partner mistakenly discarded the device in 2013 and had repeatedly asked the council for permission to excavate the site. He argued that the lost cryptocurrency should be returned to him or that he should receive £495 million in compensation.
Newport City Council opposed the claim, stating that existing laws meant the hard drive became council property when it entered the landfill. The judge ruled there were no reasonable grounds for the case to proceed, as the claim had no realistic chance of success. Environmental regulations also prohibited digging up the site, which contains more than 1.4 million tonnes of waste.
Howells, who mined the Bitcoin in 2009 when it was virtually worthless, expressed disappointment at the ruling, calling it a “kick in the teeth.” He had offered to share a portion of the recovered cryptocurrency with the council and the local community. With Bitcoin’s value surging in 2024, he speculated that the hard drive’s worth could exceed £1 billion by next year, but the legal route to reclaiming it has now been firmly closed.
A decade-long fight for a lost Bitcoin fortune has ended bitterly for James Howells, an IT engineer from Newport, Wales. The Cardiff High Court dismissed his case against Newport City Council, rejecting his bid to access a landfill where a hard drive containing 8,000 Bitcoins lies buried. The drive, discarded in 2013, holds an estimated $700-750 million as Bitcoin recently soared above $94,000 per unit.
Howells had offered the council a share of the recovered fortune and £495 million in compensation but was denied on environmental grounds. Judge Keyser KC ruled that the claim lacked “reasonable grounds” and upheld the council’s ownership of the landfill contents. Howells asserted the drive was within a 100,000-tonne section of the 1.4 million tonnes of waste.
Reacting to the decision, Howells called it a “kick in the teeth,” lamenting the missed opportunity to recover the lost fortune. Despite assembling a team of experts and holding multiple negotiations, he faced insurmountable legal and environmental roadblocks, bringing an end to the saga.
South Korea is preparing to lift its ban on institutional cryptocurrency trading, signalling a significant shift in the country’s crypto market. The Financial Services Commission (FSC), South Korea’s top financial regulator, announced plans to collaborate with the Digital Asset Committee to phase in institutional trading, beginning with non-profits. Until now, only individual traders with verified accounts have been allowed to trade cryptocurrencies, as banks have been restricted from enabling institutional accounts.
The country is also eyeing broader modernisation of its digital asset landscape. Speaking at the Securities and Derivatives Market Opening Ceremony, Korea Exchange Chairman Jeong Eun-bo revealed plans to consider cryptocurrency spot ETFs by 2025, taking cues from global examples. He emphasised the exchange’s goal of expanding opportunities within the capital market.
Additionally, South Korea’s FSC is working on measures to enhance security in crypto investments. The introduction of the Virtual Asset Investor Protection Act last year demonstrates a commitment to safeguarding traders and enabling innovative tools like security token offerings.
Oklahoma State Senator Dusty Deevers has introduced the Bitcoin Freedom Act, paving the way for residents and businesses to opt for Bitcoin as a means of payment. The bill, filed as SB325, allows salaries and transactions in Bitcoin on a voluntary basis, aligning with free-market principles. Senator Deevers emphasised that Bitcoin offers a solution against inflation and safeguards financial independence amidst the declining value of the US dollar.
The act also aims to provide a secure framework for Bitcoin’s use in Oklahoma, positioning the state as a leader in financial technology. Deevers, a vocal critic of central bank digital currencies (CBDCs), underscored Bitcoin’s decentralised nature as a tool for promoting financial privacy and sovereignty. “Bitcoin promotes financial sovereignty,” he said, highlighting its resistance to government interference.
The move builds on Oklahoma’s proactive approach to cryptocurrency. Last year, Governor Kevin Stitt enacted legislation supporting blockchain firms and safeguarding Bitcoin mining activities. As the Bitcoin Freedom Act heads for consideration in February, Oklahoma continues to embrace the future of finance while offering its citizens new financial opportunities.
The governor of the Czech National Bank, Aleš Michl, recently discussed the possibility of adding Bitcoin to the country’s foreign exchange reserves. In an interview with CNN Prima News, Michl stated that he was considering acquiring ‘a few Bitcoin’ for diversification purposes, though he emphasised it would not be a major investment. Any such decision would require approval from the bank’s seven-member board.
Despite Michl’s interest, the Czech National Bank is not currently planning to purchase Bitcoin, according to board adviser Janis Aliapulios. The bank is instead focusing on increasing its gold reserves, with a goal to boost holdings to 5% of total assets by 2028. However, Michl has not ruled out the possibility of revisiting Bitcoin as a diversification option in the future.
The growing interest in Bitcoin as a reserve asset comes as the cryptocurrency continues to outperform traditional assets, such as gold, with a 131% rise in value over the past year. Anndy Lian, a blockchain expert, believes Bitcoin’s potential as a reserve asset could redefine financial strategies globally, though its volatility remains a concern.
Meanwhile, the Bitcoin Act in the US is gaining traction, with bipartisan support for creating a strategic Bitcoin reserve. If passed, the act could solidify Bitcoin’s status as a savings technology, with some speculating that its price could surpass $1 million in the future.
Bitcoin has once again breached the $100,000 mark, trading at $101,700 as of 7 January, showing a strong resurgence after weeks of hovering between $92,000 and $98,000. This sharp rise is further fuelled by a massive surge in $120,000 call options, with over $1.56 billion in open interest, suggesting that traders are betting on a rally to new all-time highs. With the market showing renewed optimism, attention is shifting to upcoming changes in US crypto policy under President-elect Donald Trump, which could have a major impact on Bitcoin’s future.
As Trump prepares for his 20 January inauguration, many in the crypto industry are hopeful that his administration will bring a more crypto-friendly regulatory environment. A key change could be the resignation of SEC Chair Gary Gensler, a figure many crypto advocates view as an obstacle to the sector’s growth. His replacement, crypto-friendly Paul Atkins, may usher in a more supportive stance, especially regarding regulations for decentralized finance. Trump’s administration is also expected to explore initiatives like establishing a US Bitcoin reserve, further boosting the industry’s outlook.
Alongside these political developments, Bitcoin’s price performance is also influenced by broader macroeconomic factors. Economic reports in early January, including job creation and consumer sentiment data, could shape investor confidence, particularly if inflation concerns drive more interest in Bitcoin as a hedge against the dollar’s declining purchasing power. The Federal Reserve’s stance on interest rates will be pivotal, with the market expecting a neutral approach but keeping an eye on any unexpected policy shifts.
As Bitcoin pushes towards the $120,000 mark, analysts are divided on its short-term prospects. Some suggest the market is still in a “buy zone”, with potential for significant gains in the coming months, while others caution that market sentiment remains cautious. Regardless, the market is positioned for a potentially exciting year, with Bitcoin’s role as a key reserve asset likely to grow amidst shifting regulatory landscapes and economic conditions.
Banco de Investimentos Globais (BiG), one of Portugal’s largest banks, has started blocking fiat transfers to cryptocurrency platforms. The decision, revealed in a notification shared by Delphi Labs co-founder José Maria Macedo, comes as part of BiG’s efforts to comply with guidelines from the European Central Bank (ECB), the European Banking Authority (EBA), and the Bank of Portugal. These regulations focus on the risks linked to digital assets, particularly money laundering and terrorism financing.
BiG, which reported assets under management of nearly €7 billion in 2023, justified the move as necessary to align with Portugal’s legal framework. However, this action appears to be limited to BiG for now, as users have reported that fiat transfers to crypto platforms remain unaffected when using Portugal’s largest bank, Caixa Geral de Depósitos.
Macedo criticised BiG’s decision, claiming that such measures would drive more people to decentralised platforms, declaring, ‘Crypto is inevitable, banks are dead, and these abuses of power will only red pill more ppl into moving their wealth on-chain.’ His comments reflect a growing frustration with traditional financial institutions as they respond to increasing pressure from regulators.
This decision aligns with a broader, mixed stance within the EU regarding digital assets. While some ECB officials, like Jürgen Schaaf, have raised concerns over Bitcoin’s volatility and environmental impact, others, such as Piero Cipollone, advocate for the adoption of digital assets to help tackle market fragmentation. The future of cryptocurrency regulations in Europe remains uncertain, with ongoing debates about the potential benefits and risks.
Do Kwon, the South Korean cryptocurrency entrepreneur responsible for the collapse of TerraUSD and Luna currencies, pleaded not guilty to US criminal fraud charges on Thursday. The plea followed his extradition from Montenegro earlier this week.
Kwon, co-founder of Terraform Labs, is accused of orchestrating a multi-billion-dollar fraud scheme that led to an estimated $40 billion loss in cryptocurrency value in 2022. Federal prosecutors in Manhattan unsealed a nine-count indictment against Kwon, charging him with securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering.
The indictment claims Kwon deceived investors by falsely promoting TerraUSD as a stablecoin guaranteed to maintain its $1 value. Prosecutors allege that when TerraUSD’s value dropped in 2021, Kwon secretly enlisted a high-frequency trading firm to inflate the token’s price, misleading investors and artificially boosting its sister token, Luna.
These alleged misrepresentations drove substantial investment into Terraform Labs’ products, propelling Luna’s market value to $50 billion by early 2022. However, the scheme unravelled in May 2022 when TerraUSD and Luna crashed, causing turmoil in the broader cryptocurrency market.
Kwon, 33, remains in custody in Manhattan after declining to seek bail during his initial court appearance. His trial is set to begin on 8 January. Kwon has faced mounting legal troubles, including a $4.55 billion settlement with the US Securities and Exchange Commission and a federal jury finding him liable for defrauding investors earlier this year.
His case is part of a broader crackdown on cryptocurrency figures, including FTX’s Sam Bankman-Fried and Celsius Network’s Alex Mashinsky, as US authorities tighten scrutiny over the volatile industry.
MicroStrategy Inc., the business intelligence firm and the largest corporate holder of Bitcoin has emerged as the top-performing cryptocurrency stock of 2024. The company’s stock surged by an impressive 402%, driving its market cap to $83 billion. The rise aligns with MicroStrategy’s ongoing strategy of acquiring more Bitcoin throughout the year, with the firm now holding approximately 444,262 BTC, valued at over $45 billion at current prices. The rally in Bitcoin’s price, which soared by 120% in 2024, contributed significantly to the company’s impressive performance, bolstered by factors like the approval of a spot Bitcoin ETF and geopolitical support for the digital asset.
Alongside MicroStrategy, other crypto-linked stocks also saw significant gains, with Core Scientific rising 307%, Terawulf gaining 142%, and Bitdeer Technologies increasing by 122%. These firms benefitted from strong market conditions and strategic moves such as AI partnerships and mining expansions. However, MicroStrategy remains the standout performer, driven by its growing Bitcoin holdings.
Looking ahead, MicroStrategy is set to hold a shareholder meeting in early 2025, where it will present key proposals to increase the number of authorized shares. These proposals are part of the company’s broader plans to raise $42 billion through equity and fixed-income instruments, further cementing its position as a major Bitcoin treasury holder. Chairman Michael Saylor sees these measures as essential for the company’s continued growth and expansion in the crypto space.
