Bitcoin News: China Liquidates 194,000 BTC from PlusToken Scam

CryptoQuant CEO Ki Young Ju reveals that Chinese authorities have fully liquidated 194,000 Bitcoin tied to the PlusToken scam, sparking debates about the implications for the cryptocurrency market.

China’s 194,000 Bitcoin Completely Sold, Claims CryptoQuant CEO

CryptoQuant CEO and founder Ki Young Ju has stated that Chinese authorities have already liquidated a massive trove of BTC originally tied to the PlusToken scam. Posting on X (formerly Twitter) on January 23, Ju stated that the seized BTC from the PlusToken scam was mixed and sent to exchanges in 2019. He believes that there is no point in using mixers and multiple exchanges if the BTC was not sold. This has sparked an ongoing debate regarding the fate of the considerable amount of Bitcoin.

Bitcoin (BTC) Braces for Impact as BOJ Raises Interest Rate to 17-Year High

The Bank of Japan (BOJ) has raised interest rates to a 17-year high, a move that has been widely anticipated but still leaves traders and investors on edge regarding its impact on Bitcoin and the broader cryptocurrency markets. This marks the third rate hike since early 2024, signaling a shift in Japan's monetary policy in response to persistently high inflation, which is projected to remain between 2.6% and 2.8% in 2025. The rate hike has led to downward revisions in Japan's economic growth forecasts, adding complexity to an already volatile financial environment. A stronger Japanese currency resulting from the rate hike could disrupt the yen carry trade, where investors borrow yen at low interest rates to invest in higher-yielding assets elsewhere. This unwinding could trigger a chain reaction in global liquidity, potentially affecting Bitcoin and other cryptocurrencies.

Coinbase CEO Advocates for Bitcoin as Strategic Reserve

Coinbase CEO Brian Armstrong has declared Bitcoin a 'better form of money' than gold, citing its advantages such as its market cap, which is currently around $2 trillion. Armstrong believes Bitcoin could surpass gold's $18 trillion market cap within 5 to 10 years. He has urged governments to allocate a portion of their gold reserves to Bitcoin, arguing it is a stronger store of value and a more modern asset for strategic reserves. This statement comes after South African Reserve Bank (SARB) Governor Lesetja Kganyago rejected the idea of governments holding Bitcoin reserves, questioning Bitcoin's strategic importance compared to gold's historical role.

President Trump's Influence on Markets: S&P 500 Hits Record High and Bitcoin Surges

Following President Trump's address at the World Economic Forum on January 24, the S&P 500 reached an all-time high of 6,118.71, surpassing its previous record. Concurrently, Bitcoin experienced a significant increase, climbing from $102,000 to $105,000 shortly after Trump issued an executive order promoting cryptocurrency. Additionally, U.S. crude oil prices declined after Trump announced intentions to negotiate lower oil costs with Saudi Arabia and OPEC. The Dow Jones Industrial Average and Nasdaq Composite also saw gains, rising by 0.92% and 0.22% respectively.

Bitcoin Sell-Side Risk Declines Significantly

Bitcoin is at a critical juncture after pulling back from its newly established all-time high (ATH) on Monday to test key demand levels. The cryptocurrency’s ability to hold these levels will determine whether it confirms a breakout and resumes its bullish momentum or enters a correction phase that could push it below the psychological $100,000 mark. As the market watches closely, Bitcoin faces a crucial test that could shape its trajectory in the coming weeks. Key metrics from CryptoQuant provide insights into the current market dynamics, revealing a notable reduction in selling activity over recent weeks. This trend has led to a sharp decline in the Sell-Side Risk Ratio, a metric used to gauge the pressure from sellers relative to buyers. A lower Sell-Side Risk Ratio suggests that selling pressure is diminishing, which could indicate a potential for increased volatility or a continuation of the bullish trend.

Bitcoin Profit-Taking Plummets 93% Since December – What’s Next for BTC?

Bitcoin (BTC) experienced a significant surge from $68,000 in November to a new all-time high of $109,000 by January, marking a 60% increase. This led to substantial profit-taking, with investors cashing out $3 billion in December alone. However, profit-taking has since plummeted by 93%, raising questions about the market's next moves. Traders are showing caution in the derivatives market, with a shrinking leverage ratio indicating uncertainty about Bitcoin's future price direction. Additionally, there has been a noticeable decrease in Bitcoin outflows from exchanges, suggesting a potential shift in investor behavior. The market is now at a crossroads, with the possibility of a new cycle beginning or the current one coming to an end.