The total market capitalization of the cryptocurrency space has dropped by more than $60 billion over the last 24-hour period over a combination of factors, including reduced expectations of Federal Reserve interest rate cuts and a potential massive BTC sell-off from the U.S. government.
Equities markets started dropping earlier in the week after job openings in the U.S. rose more than expected in November in a potential sign the labor market is tightening. Treasury yields meanwhile rose significantly, with the interest rate on the U.S. 10-year Treasury surging by around 5 basis points t0 now stand at 4.693%.
The crypto market sell-off saw the price of bitcoin plunge to $93,000, while ether is now trading at $3,280 with both of these cryptocurrencies losing more than 2% of their value over the last 24-hour period. The crypto market as a whole lost similar value to now have total market cap of $3.18 trillion.
The drop also came as the U.S. government was cleared to sell 69,370 bitcoin valued at roughly $6.5 billion seized from the now-defunct Silk Road darknet marketplace.
As reported by DB News and confirmed bycourt documents, Chief U.S. District Judge Richard Seebord denied a motion to block the forfeiture of the seized Bitcoin, allowing the U.S. Department of Justice to proceed with selling the $6.5 billion worth of Bitcoin.
This potential sale could occur just before President-elect Donald Trump takes office and puts the upcoming political theatre intriguing, considering his pro-crypto stance and proposals, such as establishing a strategic Bitcoin reserve using the seized funds.
CryptoQuant CEO Ki Young Ju highlighted that last year, a staggering $379 billion entered the cryptocurrency market, indicating an influx of approximately $1 billion daily. He further suggested that the sale of $6.5 billion could be absorbed within a week.
Blockchain data reveals that the wallet associated with the seized funds has yet to transfer any of its coins.
Featured image via Pexels.
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