Cryptocurrencies give up recent gains, and the Justice Department allows $6.5 billion worth of Bitcoin to be sold

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Cryptoassets slip on Fed signals, strong jobs data

Digital assets I had a tough weekWith Bitcoin falling 3.6% to $94,778 on Friday as markets digested hawkish signals from the Federal Reserve and stronger-than-expected US employment data. Ethereum fared worse, falling 9.3% to $3,268.

Minutes from the Federal Reserve’s late December meeting, released Wednesday, revealed that officials are likely to take a cautious approach to interest rate cuts in 2025, citing persistent inflation concerns.

A surprisingly strong US jobs report added to the pressure: The Labor Department reported 256,000 new jobs in December, far exceeding economists’ expectations of 160,000, while the unemployment rate fell to 4.1%.

The US government has approved the sale of $6.5 billion in Bitcoin

The Department of Justice (DOJ) has received court approval to clear its largest-ever cryptocurrency seizure — 69,370 bitcoins worth approximately $6.5 billion — linked to the notorious Silk Road market. Federal judge Ruling of December 30 Nevada-based Battlebourne Investments declined to try to block the sale.

While the court’s decision does not force an immediate sale, precedent suggests the U.S. Marshals Service could proceed with an orderly auction process as it routinely does with seized assets.

The timing is noteworthy: The decision comes just days before the administration of President-elect Donald Trump takes office. Trump had previously proposed creating a strategic reserve for Bitcoin and pledged to keep all cryptocurrencies seized by the government. At a Bitcoin conference last year, he announced his intention to keep 100% of Bitcoin owned by the government.

The dawn of the golden age of cryptocurrencies?

It’s been another year of volatility in the cryptocurrency space, but 2025 is already shaping up to be even more transformative. A wave of post-election optimism, coupled with President-elect Donald Trump’s pledge to make the United States the “cryptocurrency capital of the world,” has pushed Bitcoin past $100,000.

The incoming administration is being hailed as the most pro-crypto administration in history. A wave of public cryptocurrency listings is expected, and stablecoins are on track to double their market capitalization to $400 billion – if long-awaited US legislation on stablecoins becomes a reality. The latest frontier is AI + crypto agents, software that can, in theory, trade tokens, manage assets, and even promote on social media. Read more about What could 2025 bring?.

also: Why an old-school value investor is betting on Bitcoin

elsewhere:

Crypto CEOs are demanding access to Trump as Inauguration Day approaches [Bloomberg]

The head of the Commodity Futures Trading Commission (CFTC) will step down when Trump takes office [The Wall Street Journal]

Coinbase scored a win against the SEC as a judge agreed to escalate a dispute over the definition of crypto security [Fortune]