On October 11, 2024, the U.S. Supreme Court granted the government control over 69,370 BTC seized from criminal cases, including the infamous Silk Road. This substantial amount, valued at approximately $4.33 billion, is expected to exert downward pressure on the cryptocurrency market, as significant liquidations often lead to price fluctuations.
The Supreme Court declined to hear a case from Battle Born Investments, which sought ownership of the Bitcoin. The government has a history of auctioning off seized assets in stages to mitigate market disruptions, but traders remain vigilant regarding potential immediate impacts on Bitcoin's price.
Recent market conditions have already seen Bitcoin's price drop by 5.3% between October 9 and 10, reaching a low of $58,900. This decline is attributed to higher-than-expected U.S. inflation data for September, which has raised concerns about the Federal Reserve pausing interest rate cuts. The Consumer Price Index (CPI) rose by 0.2%, indicating potential stagflation, characterized by rising prices amidst stagnant economic growth.
Additionally, a sharp increase in U.S. jobless claims, reaching a 14-month high, has contributed to broader economic concerns. With Bitcoin's price showing an 88% correlation with the S&P 500, investor confidence is waning, especially in light of outflows from U.S. Bitcoin ETFs and a lawsuit against market maker Cumberland DRW.
As macroeconomic pressures escalate, Bitcoin's short-term outlook is increasingly tied to global recession risks and the Federal Reserve's monetary policy decisions. Currently, Bitcoin is facing resistance at the 200-day moving average (MA200), with recent attempts to break above this level failing, indicating strong selling pressure and a negative outlook in the near term.