According to CoinGecko, the crypto market dropped 5% this week, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) seeing significant declines.

The Silk Road Incident
The downturn follows the U.S. Department of Justice (DOJ) receiving approval to sell 69,370 BTC seized via the Silk Road darknet marketplace. In 2013, the FBI seized all Silk Road assets, including a colossal amount of Bitcoin.

Valued at around $6.5 billion, this Bitcoin stash has been tied up in several lengthy legal battles, with the U.S. government initially auctioning off some of it. Battle Born Investments tried to block the sale, but its claims were officially dismissed through a recent court ruling on December 30th.

Politically Motivated
A federal judge authorized the DOJ to sell the crypto, citing concerns over potential losses if held too long. The sale, managed by the U.S. Marshals Service, could become one of the largest crypto liquidations in history. Analysts worry this liquidation could adversely affect Bitcoin and possibly trigger a market crash.

Some, like crypto user DefiBanked, speculate that the decision by the DOJ might have political motives, with proceeds potentially supporting Ukraine and a move to suppress crypto entirely. Others fear it could be a tactic to manipulate the market and thwart Donald Trump and his Bitcoin reserve plans.

Nvidia unveiled its most compact yet powerful AI supercomputer yet at the Consumer Electronics Show (CES) on January 6th, but the announcement failed to prevent a stock decline amid a broader market downturn.

Catering To Researchers And Students

CEO Jensen Huang introduced Project DIGITS, a personal AI supercomputer powered by the GB10 Grace Blackwell Superchip, designed for researchers and students, priced at around $3,000. He also showcased the Cosmos platform for developing humanoid robots and autonomous vehicles, highlighting its ability to generate synthetic driving scenarios.

Cautiously Optimistic

Meanwhile, Nvidia launched AI Blueprints for creating custom agents with features like PDF-to-podcast conversion and video summarization. Despite these innovations, Nvidia shares dropped 6.2% on January 7th, following weak U.S. jobs data that impacted tech and crypto stocks.

However, analysts remain optimistic, citing the strategic positioning that Nvidia has in data centers, autonomous vehicles, and robotics, in addition to the fact that the company saw its stock go up by 166% compared to a year ago.

Virtuals Protocol (VIRTUAL) has surged 133% in the last 30 days, driven by the meteoric rise of crypto AI agents. However, it has seen a 6% dip in the past 24 hours, suggesting a potential pause in its upward momentum.

Uncertainty Looms

Currently with a $4 billion market cap, VIRTUAL is now the third-largest AI coin, behind RENDER and TAO. The ADX is at 13.3, indicating weak trend strength, and the BBTrend has turned negative at -1.51, signaling possible consolidation.

In fact, the ADX for VIRTUAL has dropped to 13.3, signaling a weakening trend and potential consolidation. With minimal trend momentum, the price may stay range-bound unless a shift in market pressure occurs.

BBTrend Turns Negative

After a positive run, VIRTUAL saw its BBTrend turn negative at -1.51, reflecting bearish sentiment. This change, following a peak of 20.5 on January 4th, suggests that selling pressure has overtaken buying activity, potentially leading to further consolidation or downward movement.

If VIRTUAL breaks the $3.73 support level, further declines to $3.27 and $2.81 are possible. However, the ongoing AI hype could sustain interest, and if bullish momentum returns, VIRTUAL may challenge resistance at $4.59, potentially pushing past $5.

Andrew Tate, the self-proclaimed Top G under house arrest in Romania, has officially launched his own political group known as the Bruv Party, aimed at saving Britain.

National Bitcoin Reserve

Tate and his policies, including 24/7 live streams of knife crime offenders in solitary confinement and a new BBC model sourcing content via X (formerly Twitter), have been widely mocked. Tate also proposes creating a national Bitcoin reserve to prevent foreign economic pressure and holding weekly referendums to engage the public in constant national polls.

While the idea of forming a national Bitcoin reserve is not new by any means, as both Donald Trump and Vladimir Putin have previously announced similar plans for their respective countries, many wonder if Tate is actually serious about his plans to do so or if he is simply trying to secure more votes through the crypto community.

Easier Said Than Done

The whole spectacle began when Andrew asked his followers if he should run for Prime Minister, misspelling Britain in the process. Critics quickly pointed out the irony of his plans, with some highlighting his criminal history involving trafficking and abuse. Tate did release a manifesto detailing his plans, albeit filled with typos and bizarre ideas.

Labour MP Emily Darlington condemned his political ambitions, stating that Britain would not support a misogynist charged with serious crimes, despite the fact that Andew has millions of devoted followers worldwide. As Tate remains confined in Romania, many question whether this is a genuine political campaign or just another attention-seeking stunt.

Cryptocurrency prices tumbled in the past 24 hours, with Bitcoin (BTC), Dogecoin (DOGE), and Solana (SOL) leading the decline as both crypto and stock markets struggle to recover.

Shifting Expectations

Bitcoin dropped to about $97,856, showing a 4% dip, while Ethereum (ETH) and Dogecoin fell around 7%, and Solana saw a 6% drop. The unexpected rise in U.S. job openings and a shift in investor expectations regarding Federal Reserve interest rate cuts seem to be contributing factors.

More Corrections To Come

This market correction led to a surge in liquidations, with $385 million in long and short positions wiped out in the past 24 hours. The crypto market had previously thrived under low interest rates, but the rate hikes by the Fed in 2022 made Bitcoin less appealing.

Despite this, Bitcoin and equities surged last year as the Fed eased borrowing costs. Former BitMEX CEO Arthur Hayes predicts the crypto market will peak in mid-to-late March before experiencing a significant correction.

Canadian Prime Minister Justin Trudeau has officially announced his resignation, opening the door for Pierre Poilievre, the Conservative leader known for his pro-crypto views, to potentially assume leadership.

A Series Of Challenges

The resignation comes amid growing political pressures and internal disputes, with recent polling showing the Liberal Party heading toward a significant loss in the next general election, set to occur before October 20th.

This resignation follows a series of challenges, including rising living costs and an ongoing housing crisis, which have led to increasing discontent among voters. The move was accelerated following a meeting with 50 Liberal members representing Ontario, many of whom voiced concerns about Trudeau and his leadership.

Mending Fences

Tensions reached a high point in 2016 when Donald Trump threatened to impose tariffs on Canadian goods, and efforts to resolve the issues failed to calm the situation. With Trudeau stepping down, the focus turns to Pierre Poilievre, the leader of the Conservative Party, who many believe would form a more mutually beneficial partnership with Trump and the United States.

Poilievre has championed the potential of blockchain technology and digital currencies. Moreover, Trudeau faced plenty of controversy through his handling of the 2022 Freedom Convoy protests, which saw the invocation of the Emergencies Act and the freezing of bank accounts. This drew sharp criticism, particularly by the crypto community.

Some crypto traders have made millions through AI-related tokens, but the rapid rise of these agents has sparked backlash by community members and experts who argue that these tokens are even more problematic than meme coins.

Making Millions

On January 6th, Lookonchain reported that a Solana-based trader turned $2 million into $21 million in under two months by investing in the AI agent and meme coin AI16Z. The investor purchased 10.6 million ai16z between November 15th and 22nd, 2024, at an average price of $0.214. The token surged by 965%, reaching $2.28. The investor also made $13.4 million through other AI crypto tokens like GOAT and FARTCOIN.

Criticism Of AI Tokens

Despite the aforementioned gains, the sector has faced heavy criticism. ZachXBT, a well-known on-chain investigator, called AI tokens a flatout scam, claiming that 99% of the sector is fraudulent. He argued that while meme coins make no promises and are usually not meant to be taken seriously, AI coins try to appear legitimate to deceive buyers.

Additionally, a poll of 42 Solana founders found many considered AI agent tokens to be overhyped. Still, the sector has seen a 5% increase in the last 24 hours, with a trading volume of $2.28 billion and a market cap of $17.5 billion, according to CoinGecko.

Spot Bitcoin ETFs in the U.S. recently saw a surge in net inflows, totaling nearly $1.9 billion on January 3rd and January 6th, reversing a dip in demand compared to late December.

Over $900M

On January 6th, Bitcoin ETFs attracted $978.6 million, led by Fidelity Wise Origin Bitcoin Fund at $370.2 million. The BlackRock iShares Bitcoin ETF and ARK 21Shares Bitcoin ETF followed with $209 million and $153 million, respectively.

In addition, the Bitwise Bitcoin ETF and the Grayscale GBTC and BTC ETFs saw over $70 million in inflows, while VanEck and Franklin Bitcoin ETFs collected $17.3 million and $8.9 million, respectively. However, Invesco, Valkyrie, and WisdomTree saw no inflows on January 6th.

Offsetting Outflows

The strong inflows on January 3rd and 6th nearly offset the $1.9 billion in outflows between December 19th to January 2nd, bringing the total net inflows for spot Bitcoin ETFs to $36.9 billion since their launch.

The iShares Bitcoin ETF leads with $37.4 billion in inflows, followed by Fidelity at $12.4 billion. In contrast, GBTC saw $21.4 billion in outflows. An October Binance report found nearly 80% of demand for spot Bitcoin ETFs came through retail investors, but analysts expect increased institutional interest in 2025.

Meanwhile, Bitwise predicts a $200,000 Bitcoin price by 2025, while VanEck forecasts Bitcoin could surpass $180,000.

U.S. prosecutors handling the criminal case against Do Kwon, co-founder of Terraform Labs, estimate that over one million individuals may have been impacted by the infamous collapse of the Terra ecosystem.

A Monumental Collapse

Acting U.S. Attorney Daniel Gitner stated that the government plans to set up a website to inform victims of their rights, deeming other methods impracticable due to the decentralized nature of cryptocurrency transactions, which lack identifiable personal information.

Terra collapsed in May 2022, losing a $50 billion valuation in just 72 hours. Kwon had claimed his project aimed to build an ecosystem superior to Bitcoin (BTC) and Ethereum (ETH), but lacked transparency. The U.S. Department of Justice alleges Kwon misled investors and manipulated markets.

An Ongoing Case

Kwon was extradited to the U.S. via Montenegro earlier this year, facing nine felony fraud charges. He pleaded not guilty in court on January 2nd. Authorities have not yet revealed whether they will offer a plea deal or proceed to trial.

In addition to the various criminal charges, Kwon was also ordered to pay a $4.5 billion settlement to the United States Securities and Exchange Commission (SEC) in April 2024.

The last quarter of 2024 saw numerous meme coins initiating their presales and rapidly gaining popularity. With these presales lasting for months, the first quarter of 2025 offers exciting opportunities to invest in these tokens at launch.

1. $WEPE, $FLOCK, And $BEST

Raising over $40 million, $WEPE is expected to be a major 10x or even 100x token. It offers holders tools and insights similar to Wall Street traders, giving retail investors a chance to compete with crypto whales.

FLOCK is a vote-to-earn platform where users decide the future of the project and earn tokens for voting. In addition, its NFT-based ecosystem offers a gamified metaverse. The presale has raised $8.9 million, with each token priced at $0.0066351.

$BEST is the native token of Best Wallet. The token offers benefits like lower fees and higher staking rewards. The presale has raised $6.5 million, and the price is $0.0235 per token.

4. $SLAP, $RACE, And $LCAI

Catslap combines crypto with a fun clicker game, where users earn tokens by slapping characters. With over 2 billion slaps, $SLAP tokens are currently priced at $0.00343712, and many expect them to rise to $0.00877 by the end of 2025.

Race to a Billion lets users predict outcomes of virtual meme races using $RACE tokens. With $225,000 raised, tokens are priced at $0.00827, and prices are expected to rise soon.

Finally, LCAI combines AI and blockchain, rewarding contributors without compromising network security. The presale has raised $7 million, with the price currently at $0.004875. Prices are projected to hit $0.05 by late 2025.

These 6 tokens offer great growth potential in 2025. While $WEPE and $FLOCK stand out, it is important to always do your own research before investing.

Despite many investors hoping the annual Santa Rally would help mitigate their losses, it ultimately failed to deliver this year. U.S. markets saw a modest recovery on Friday, with the S&P 500 gaining 1.26%, the Dow Jones Industrial Average rising by 0.8%, and the Nasdaq Composite climbing by 1.77%. However, these gains were not enough to offset earlier losses.

Mounting Frustrations

Traditionally, the Santa Rally lifts stocks in the final five trading days of the year and the first two of the new one. But this year, Wall Street missed out, adding to broader market frustrations. Bitcoin (BTC), however, is showing signs of a rebound. After weeks of sharp volatility, the flagship crypto recovered to above $99K.

Retail investors are driving renewed optimism as the new year begins, with some analysts predicting Bitcoin could hit $150,000 by mid-2025 or even $200,000 by year-end, barring further headwinds. As of now, BTC is hovering around $99,500.

All Eyes On January

Attention now shifts to the January Effect, a phenomenon where small-cap stocks tend to outperform as investors reset their portfolios and reinvest fresh capital, often through year-end bonuses. Historically, January has delivered stronger returns compared to other months, though its impact has diminished in recent years.

Adding to market uncertainty is the upcoming inauguration of Donald Trump. While the president-elect has signaled pro-crypto intentions, concrete actions will determine market outcomes. Swift policy moves could ignite growth, but delays or mixed signals might spark corrections.

In any case, this seasonal market pattern could also benefit crypto, which has increasingly mirrored traditional equities. With Bitcoin and stocks moving in step, January could offer a fresh boost if trends hold.

PENGU has surged over 14% in the past 24 hours, lifting its market cap to $2.57 billion, fueled by speculation of a potential collaboration between Pudgy Penguins and Pokémon. Investors are excited about the possible partnership, especially after the recent airdrop disaster.

Massive Potential

A recent tweet by a Pudgy Penguin holder hinted at the rumored partnership, sparking excitement among investors about the potential for a high-profile alliance to boost PENGU in terms of both its brand and overall price.

Meanwhile, technical indicators like the RSI at 64.6 and ADX at 27.3 suggest strong but stabilizing momentum, with PENGU positioned to challenge key resistance at $0.043 and possibly climb to $0.05 or higher.

No Confirmation Yet

Pokémon is one of the most popular franchises of all time, as the iconic pocket monsters helped earn $1.9 billion in revenue between March 2023 and February 2024. However, without confirmation of the collaboration, the current hype about Pudgy Penguins collaborating with Pokémon remains speculative, and a reversal could see prices fall to support levels around $0.029 or $0.025.