Bitcoin’s Strategic Reserve Status Challenged by DOJ Sale

In a significant development that underscores the evolving regulatory and strategic landscape for digital assets, Senator Cynthia Lummis has publicly condemned the Department of Justice's recent sale of seized Bitcoin. The controversy centers on the liquidation of 57.55 BTC, valued at approximately $6.3 million, which were confiscated from developers associated with the Samourai Wallet. This action, conducted through Coinbase Prime, has sparked a major policy debate as it appears to directly contravene Executive Order 14233. This order explicitly designates confiscated bitcoin as a component of America's Strategic Reserve, positioning it as a digital asset of national importance, analogous to traditional strategic holdings like gold bullion or petroleum reserves. The sale, which occurred on November 3, 2025, represents more than a simple asset disposal; it challenges the foundational principle of treating Bitcoin as a sovereign strategic asset. Senator Lummis's critique highlights a critical tension between law enforcement's procedural actions and broader national economic and technological strategy. This incident raises profound questions about the long-term governance of state-held digital assets and the coherence of U.S. policy regarding cryptocurrency. For market observers and proponents, the establishment of a Bitcoin Strategic Reserve is seen as a bullish, long-term legitimization of the asset class, signaling state-level adoption and scarcity enhancement. The DOJ's move, therefore, is viewed not just as a violation of protocol but as a potential undermining of a policy framework intended to integrate Bitcoin into the core of national financial security. The outcome of this dispute could set a crucial precedent for how seized digital assets are managed globally, influencing both regulatory approaches and market perceptions of Bitcoin's institutional role well into the future.

Lummis Condemns DOJ Bitcoin Sale as Violation of Strategic Reserve Mandate

Senator Cynthia Lummis has launched a scathing critique of the Department of Justice's abrupt liquidation of 57.55 BTC ($6.3 million) seized from Samourai Wallet developers. The move, executed via Coinbase Prime, directly contradicts Executive Order 14233, which designates confiscated Bitcoin as part of America's Strategic Reserve—a digital counterpart to gold bullion or petroleum stockpiles.

The November 3, 2025 transaction has exposed a rift between federal agencies and WHITE House policy. "This isn't just bureaucratic incompetence—it's unilateral disarmament," Lummis declared on social media, noting China's aggressive BTC accumulation while U.S. agencies "fire-sale national assets." Market analysts observe the incident reveals lingering tensions in the post-'War on Crypto' landscape.

Legal scholars debate whether the Marshals Service acted ultra vires, as the coins fell under Trump's "digital Fort Knox" doctrine. The sale coincides with Bitcoin's 12% monthly surge, raising questions about opportunity costs. "You don't drain the SPR when oil hits $90," remarked a Treasury official speaking anonymously.

Bitcoin Stabilizes Near $94K as Venezuela Political Shift Sparks Safe-Haven Demand

Bitcoin's price action shows resilience at $93,860, compressing into a bullish wedge pattern after November's 12% correction from its $107,700 peak. The technical structure suggests accumulation rather than distribution, with geopolitical tensions now reinforcing its store-of-value narrative.

Venezuela's escalating crisis—marked by Nicolás Maduro's reported detention aboard the USS Iwo Jima—has reignited Bitcoin's appeal as a hedge against sovereign risk. Historical patterns show such political ruptures accelerate crypto adoption in emerging markets, particularly where capital controls exist.

The White House's involvement signals a potential inflection point for Venezuelan crypto policy. With the nation already a hotspot for BTC and USDT adoption, further sanctions could drive reflexive demand for decentralized assets.

5 Things to Know Before the Stock Market Opens

Stock futures show muted activity following Monday's rally, with the Dow Jones Industrial Average reaching record highs. Nvidia and AMD unveiled new AI-focused chips at CES, signaling continued momentum in semiconductor innovation. Oil stocks extend gains amid geopolitical shifts in Venezuela, while gold and silver prices hover near record levels as investors seek safe havens.

WTI crude futures climb to $58.60 per barrel, reflecting supply concerns. Bitcoin maintains strength at $93,800, demonstrating resilience despite minor pullbacks. The 10-year Treasury yield edges up to 4.18%, potentially influencing borrowing costs across markets.

Micron and other chipmakers benefit from soaring demand for AI hardware infrastructure. The semiconductor sector's growth underscores technology's expanding role across industries, from data centers to edge computing applications.

Goldman Sachs Upgrades Coinbase to 'Buy' in Bullish Crypto Sector Shift

Goldman Sachs has upgraded Coinbase Global Inc. from 'neutral' to 'buy,' assigning a $303 price target that implies 30% upside potential. The MOVE signals growing institutional confidence in crypto infrastructure plays as Bitcoin holds steady at $93,866 and total market capitalization reaches $3.3 trillion.

Analysts highlight Coinbase's strategic pivot toward recurring revenue streams, with 40% of income now derived from custody, staking, and subscription services—a seismic shift from its transaction-dependent model five years ago. The exchange now commands nearly half of the U.S. market share while safeguarding $500 billion in assets.

Bitcoin's Market Structure Suggests Redistribution, Not Accumulation

Bitcoin's recent price recovery toward the $100,000 mark has reignited bullish sentiment, but on-chain data reveals a more nuanced picture. The market structure currently resembles redistribution rather than accumulation, indicating cautious participation rather than strong conviction from buyers.

Joao Wedson, founder of Alphactal, notes that Flow statistics and on-chain activity lack the hallmarks of classic accumulation phases. Instead, the market appears to be in a transitory state, with distribution prevailing as participants await clearer directional signals.

While BTC's break past key resistance levels suggests renewed momentum, underlying metrics caution against premature optimism. The cryptocurrency's trajectory remains contingent on whether genuine accumulation emerges to sustain the upward move.

Bitcoin Core Developers Discover Critical Wallet Migration Bug in Versions 30.0 and 30.1

Bitcoin Core developers have identified a critical vulnerability in wallet versions 30.0 and 30.1, affecting the migration process from legacy wallets to modern descriptor wallets. The bug, disclosed via an X post, poses a rare but severe risk: under specific conditions, migrating a legacy Berkeley DB (BDB) wallet could lead to the deletion of all wallet files on the same node. Unbacked wallets may result in permanent fund loss.

The issue arises during migration attempts when a default wallet.dat file—discontinued since version 0.21 five years ago—is present. Pruning-enabled nodes with wallets unloaded mid-process are particularly vulnerable. Developers have removed affected binaries from bitcoincore.org and advise against migrations until the release of patched version 30.2.