![Bitcoin’s short-term holders offload $2.4 billion amid price drop below $95,000](https://cryptoslate.com/wp-content/uploads/2025/01/bitcoin-sth.jpg)

Bitcoin's price experienced a **sharp decline**, dropping below **$95,000 on January 8**. This downturn wiped out the gains made earlier in the week when Bitcoin briefly surpassed **$100,000**.

Data from **CryptoQuant** indicates that **short-term holders (STHs)**—defined as investors holding Bitcoin for less than **155 days**—were significant contributors to this sell-off. Over **26,000 BTC**, valued at more than **$2.4 billion**, were moved to exchanges at a loss.

![Bitcoin Short-Term Holders Exchange Transfers](https://cryptoslate.com/wp-content/uploads/2025/01/BTC-Short-Term-Holder-PL-to-Exchanges-Sum-24H.png)
*Source: CryptoQuant*

Further analysis from **Alphractal** revealed that this wave of selling pressure aligns with a broader decline in **accumulation trends** among short-term holders. The **“Accumulation vs. Distribution of STH”** metric indicates a growing preference among STHs for liquidating rather than accumulating their Bitcoin holdings.

![Bitcoin Short-Term Holders Accumulation vs Distribution](https://cryptoslate.com/wp-content/uploads/2025/01/Ggtc4JCWcAA87Md-scaled.jpg)
*Source: Alphractal*

Notably, STH accumulation has been in a **steady decline since December 5**. This diminishing demand from short-term holders is closely linked to Bitcoin’s recent **price volatility**, highlighting the impactful role these investors have on market trends.

![Bitcoin Short-Term Holders Accumulation](https://cryptoslate.com/wp-content/uploads/2025/01/Ggtc4y6W4AEgop1-scaled.jpg)
*Source: Alphractal*

Bitcoin's market hit by short-term holders liquidating $2.4 billion in price decline under $95,000 mark.

Massive Sell-Off: Short-Term Bitcoin Holders Liquidate $2.4 Billion Amid Price Plunge

Today, the **Bitcoin Students Network** (BSN) is thrilled to announce the launch of its **"Layer Zero" program**, designed to empower youths around the world to collaboratively build and enhance Bitcoin's **social layer**. This initiative aims to harness the potential of Bitcoin as a tool for **financial freedom** and **revolutionary technology** through a shared sense of community.

## The Bitcoin Students Network
The [Bitcoin Students Network (BSN)](https://www.bitcoinstudentsnetwork.org/) is dedicated to coordinating and advancing **Bitcoin education** globally, focusing on youth by supporting student-led clubs and offering resources to help them grow. Since its inception, BSN has expanded to over **70 universities** and groups across **25 countries** on **6 continents**.

## Bitcoin’s Layer Zero
Bitcoin has revolutionized the way we communicate **monetary value and information** without intermediaries. The health of Bitcoin relies heavily on its **social layer**, making the empowerment of **Layer Zero** crucial for maintaining its core values of **freedom, privacy,** and **community**. As BSN co-founder Ella Hough stated, "Layer Zero exists to strengthen that network, empower its believers, and ensure that Bitcoin's foundational principles guide its future."

## The Bitcoin Students Network's Layer Zero Program
The **Layer Zero program** emphasizes **"turning belief into action"** by providing students with hands-on experiences paired with entrepreneurs and builders globally. Unlike traditional educational programs, this initiative fosters a global movement centered around **collaboration, peer learning**, and **innovation**. 

Students will participate in a **2.5-month immersive program**, gaining practical experience through specialized training that combines **technical skills** with community engagement. This initiative aims to accelerate **financial inclusion** and **economic empowerment** in areas facing infrastructure challenges.

Applications for the Layer Zero program are currently open until **February 15**. Interested students can [apply here](https://form.typeform.com/to/FXfttZrK) and will receive responses by **March 1**. 

Launched on **January 9**, this date holds significance as it commemorates the day Bitcoin began in 2009, marking the release of Bitcoin v0.1.

## The Bitcoin Future of GenZ
While not exclusively aimed at GenZ, this program recognizes their importance in the **Bitcoin education** landscape. It addresses how to effectively onboard the next generation of Bitcoin enthusiasts by presenting Bitcoin as a tool for **financial freedom** and combating **inflation**. Ella noted that recent studies indicate many GenZ individuals feel financially insecure and seek alternative paths. Layer Zero is for those who value **community**, **independent thinking**, and taking control of their futures. For them, Bitcoin represents a practical tool to build a hopeful and abundant future for themselves and their families.

**Disclosure**: I am an advisory board member for the Bitcoin Students Network (BSN).

Today, the Bitcoin Students Network launches its "Layer Zero" program to empower youths globally to collaboratively build and strengthen Bitcoin's "social layer."

Unlocking Bitcoin's Future: The Launch of Layer Zero to Empower Global Youth

# Grayscale Rebalances Crypto Large Cap Fund

Grayscale Investments has announced a significant **reshuffle** of its crypto-focused funds, highlighting both **winners and losers** in the current market.

## Major Changes in the Digital Large Cap Fund

The asset manager has removed **Avalanche** from its Digital Large Cap Fund and allocated a small portion to **Cardano**. Now, **Bitcoin** and **Ethereum** dominate this portfolio, comprising **90%** of the assets. The remaining funds are divided among **XRP**, **Solana**, and the newly added **Cardano**.

In an official statement, Grayscale explained that this adjustment was influenced by fluctuations in the **CoinDesk Large Cap Select Index**. 

### Performance Comparison

Avalanche has struggled recently, with its price remaining **flat** compared to last year. In stark contrast, Cardano has surged by **75%** over the same timeframe.

## Adjustments in the GSCPxE Fund

Further changes have been made to the **GSCPxE Fund**, which focuses on smart contract platforms excluding Ethereum. Here, **Solana** and **Cardano** are weighted at **75%**, while Avalanche holds about **9%**. Additionally, **Sui** has been introduced into this fund, accounting for **8%**, leaving some room for **NEAR Protocol** and **Polkadot**.

## AI Fund Rebalancing

The **AI Fund** is also seeing modifications, with a more balanced distribution across various crypto projects. **NEAR Protocol** leads with a **30%** weighting, followed by **Render** at **20%**, **Bittensor** at **19%**, **Filecoin** at **17%**, and **The Graph** at **10.45%**. A new investment of **2.8%** has been made in **Livepeer**, focusing on decentralized video infrastructure.

## Changes in the DeFi Fund

In the **Grayscale Decentralized Finance Fund**, **Synthetix** has been replaced by **Curve** as the smallest holding, which is heavily influenced by **Uniswap** (47.88%) and **Aave** (27.87%).

Grayscale rebalances its multi-asset funds quarterly and is keen on expanding its offerings of **exchange-traded funds** to investors on Wall Street. They are currently looking to convert both the **Digital Large Cap Fund** and the **Solana Trust** into ETFs, hoping for favorable regulatory conditions under the upcoming SEC leadership.

*Edited by Stacy Elliott.*

The remainder of the fund's assets will be split among XRP, Solana, and now Cardano.

Grayscale's Bold Move: 90% of Large Cap Fund Now in Bitcoin and Ethereum!

### BTC, ADA Price News: Bitcoin Slumps Further as Traders Await Friday Data

On **January 9, 2025**, Cardano’s **ADA** led the **losses** among major cryptocurrencies as **bitcoin** continued its downward trend, stalling any potential rally for altcoins. Bitcoin (BTC) fell to nearly **$93,000** on Wednesday, driven by recent economic data that caused **U.S. treasury yields** to surge, leading to declines in **equities**. The latest **Institute for Supply Management (ISM)** report revealed stronger-than-expected performance from U.S. service providers, pushing the prices-paid measure to its highest since early 2023.

This downturn affected other major tokens, with **ADA**, **SOL**, **BNB**, and **ETH** all down nearly **10%** since Monday. The **CoinDesk 20 (CD20)** index tracking large tokens saw a decrease of **2.87%** in just the last 24 hours, following a **7% plunge** on Wednesday.

In the broader market, options on the **S&P 500** now indicate greater downside risks compared to a year ago, which may further suppress the chances of recovery for risk assets like bitcoin, as traders gravitate towards safer investments such as **bonds**.

Concerns surrounding President-elect **Donald Trump's** inauguration on **January 20** could trigger a **“sell-the-news”** event, according to **CoinDesk’s Omkar Godbole**. However, risk-taking has increased over the past two months with expectations of pro-business reforms under Trump's presidency, leading to potential profit-taking.

Trump's inauguration is anticipated to influence **crypto regulations** and may introduce a strategic bitcoin reserve in the following months, setting the stage for a potential rally. **QCP Capital** in Singapore urges traders to keep an eye on upcoming U.S. economic data for further positioning.

They stated, “All eyes are on this week's **FOMC** and **NFP** releases, which are expected to influence Bitcoin's price trajectory. We believe Bitcoin's pullback is merely a pause, setting the stage for a **bullish rally** as Trump's inauguration fuels optimism.”

The **NFP** report, which reflects job creation in the U.S. excluding farm jobs, serves as an indicator of economic health. Strong NFP numbers could signal potential **interest rate hikes**, which are typically detrimental to risk assets like bitcoin, while weak figures suggest lower rates, benefiting such assets.

BTC, ADA Price News: Bitcoin Slumps Further as Traders Await Friday Data

Cardano's ADA Plummets 8% as Bitcoin Traders Look to Trump's Upcoming Inauguration

## Current Bitcoin Price: **$93,500**

- **Bitcoin continues to edge down**, trading below the $94,000 level on Thursday after falling more than **5% this week**.
- **Bitcoin US spot ETFs recorded an outflow** of over **$568 million on Wednesday**, indicating decreasing demand.
- **CryptoQuant data shows** that reducing stablecoin inflows signals a **weakening buying pressure**.

## Weakening Institutional Demand

Bitcoin's price has been trading in the red for the **third consecutive day**, falling below **$94,000**. This correction may indicate a **weakening institutional demand**. According to Coinglass, the **$568.80 million** outflow from Bitcoin spot ETFs on Wednesday is the highest since December 19. If this trend continues, it could lead to further declines in Bitcoin’s price.

![Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass](https://editorial.fxsstatic.com/miscelaneous/Screenshot%202025-01-09%20132613-638720180852253592.png)

![Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass](https://editorial.fxsstatic.com/miscelaneous/Screenshot%202025-01-09%20151443-638720181134573264.png)

Another concerning trend is the **decrease in stablecoin reserves** on Binance. From a **$13 billion inflow** on December 5, reserves have dropped to a **$310 million outflow** on Tuesday. This behavior suggests that investors are either securing their capital or locking in profits.

## Potential for a Price Decline

Historically, a similar trend occurred in May 2024, leading to a sharp price decline from **$71,900 to $64,300**. If the current trend continues, we might see a similar crash soon.

![Stablecoins-Exchange Netflow Heatmap chart. Source: CryptoQuant](https://editorial.fxsstatic.com/miscelaneous/Screenshot%202025-01-09%20145356-638720181580941639.png)

Despite the **bearish outlook**, caution is advised for traders in short positions. The upcoming **Donald Trump presidential inauguration on January 20** could act as a significant market catalyst, potentially driving Bitcoin's volatility. 

In an exclusive interview, Dr. Sean Dawson, Head of Research at Derive.xyz, stated: “The upcoming inauguration could serve as a significant market catalyst, potentially driving volatility in Bitcoin and Ethereum.” 

## **Bitcoin Price Forecast: Bears Eyeing the $90K Mark**

Bitcoin price has dropped **7% from Tuesday to Wednesday**, closing below **$95,060**. Currently, it trades around **$93,500**. If BTC continues its downward trend and closes below the **38.2% Fibonacci retracement level** at **$92,493**, it may extend the decline to test the **psychological level of $90,000**.

The **Relative Strength Index** on the daily chart is at **43**, indicating bearish momentum, while the **MACD** shows a bearish crossover, suggesting a downtrend.

![BTC/USDT daily chart](https://editorial.fxsstatic.com/miscelaneous/BTCUSDT_2025-01-09_15-06-03-638720182227095863.png)

If BTC manages to recover and close above **$100,000**, it could retest the all-time high of **$108,353** from December 17, 2024.

Bitcoin (BTC) continues to edge down, trading below the $94,000 level on Thursday after falling more than 5% this week. 

Is Bitcoin Heading for a $90K Crash? Key Insights and Trends Revealed!

### ChatGPT's Market Predictions for 2025

In an intriguing exercise, I asked **ChatGPT** to predict market trends for **2025**, focusing on major financial indicators, including the **S&P 500**, interest rates, **inflation**, and **Bitcoin**. The AI’s insights are fascinating and offer a glimpse into potential future scenarios.

![AI Hand holding crystal ball.](https://i.insider.com/677ed8548951662c9f1f46c0?width=700)

### The S&P 500 Will End the Year at 6,500
ChatGPT predicts that the **S&P 500** will reach **6,500** by the end of **2025**. This bullish outlook aligns with major financial institutions like **Goldman Sachs** and **JPMorgan**, which expect continued robust corporate earnings growth. With a median price target of **6,600** from Wall Street strategists, ChatGPT’s forecast is optimistic.

### 2025's Top Sectors: Tech, Healthcare, and Consumer Discretionary
According to ChatGPT, the leading sectors in **2025** will be **information technology**, **healthcare**, and **consumer discretionary**. The tech sector, driven by the **AI megatrend**, is expected to flourish, while healthcare could benefit from advancements in biotechnology and an aging population.

### The Fed Will Cut Rates 2-3 Times
ChatGPT anticipates that the **Federal Reserve** will implement **2-3 rate cuts** in **2025**, targeting a rate between **3.5%-4%** by year-end. This prediction is consistent with market expectations, which currently lean towards a single rate cut.

### Inflation Stabilization Between 2.5%-3%
The AI forecasts inflation will stabilize between **2.5% and 3%** as factors such as slowing wage growth and stabilizing energy prices prevent further escalation. Some economists, including those at **Goldman Sachs**, predict inflation could drop even lower to **2.1%**.

### Bitcoin Expected to Hit $125,000
In perhaps the most headline-grabbing prediction, ChatGPT believes **Bitcoin** could soar to **$125,000** by the end of **2025**. This bullish sentiment stems from anticipated institutional inflows and expanding use cases for Bitcoin. Despite the cryptocurrency's notorious volatility, the AI suggests a strong demand for Bitcoin as a strategic asset will drive its price upward.

Overall, while market predictions are notoriously difficult, ChatGPT’s insights provide a compelling perspective on potential trends for **2025**. Whether these predictions materialize remains to be seen, but they certainly spark interest and discussion among investors and financial enthusiasts alike.

The AI chatbot shared predictions for the S&P 500, interest-rate cuts, inflation, and bitcoin. 

ChatGPT's Bold Predictions for Bitcoin and Market Trends in 2025 Revealed!

### A Miner’s Struggle for Recovery

James Howells, an early **Bitcoin adopter**, is devastated after his claim to recover **£600 million** worth of Bitcoin from a landfill was dismissed by the court. He expressed his disappointment, stating, "The case being struck out at the earliest hearing doesn't even give me the opportunity to explain myself or an opportunity for justice in any shape or form."

### Twelve Years of Efforts

For over **12 years**, Mr. Howells has attempted to engage with **Newport City Council** for access to the landfill site where he believes his hard drive containing the Bitcoin is buried. He described the council's rejection as "a kick in the teeth," emphasizing that it wasn't about **greed**, but rather a desperate plea for a fair conversation.

### The Value of Forgotten Bitcoin

In **2009**, Howells mined the Bitcoin for nearly nothing and later forgot about it. As the cryptocurrency's value soared, he sought expert help to locate the lost hard drive. The Bitcoin's value has risen **over 80%** in 2024, and Howells speculates it could be worth **£1 billion** by next year.

### Legal Challenges

The council argued that existing laws meant the hard drive became their property once it entered the landfill, and environmental permits would prevent any excavation attempts. The judge ruled that the claim had no realistic prospect of success in a trial.

### Community Offer

Howells even offered to donate **10%** of the recovered Bitcoin to the local community, which the council's representative criticized as an attempt to encourage them to engage in a risky venture. 

### A Glimpse into Bitcoin

Bitcoin is often referred to as a **cryptocurrency**, a completely virtual form of money that can be used to buy goods and services, although acceptance is limited in many places. Some countries, including **China** and **Saudi Arabia**, have imposed bans on Bitcoin altogether.

James Howells tried to sue a council for access to the site or get £495m in compensation. 

The Heartbreaking Battle for £600 Million: A Bitcoin Miner’s Quest for Justice

## Bitcoin and Crypto Prices Take a Dive

Bitcoin and cryptocurrency prices have experienced a **significant decline**, closely following the downward trend in stock markets. This downturn has been **exacerbated** by Tesla billionaire **Elon Musk's** unexpected warning regarding Bitcoin's price.

Earlier this week, Bitcoin reached a peak of **$100,000**, only to plummet to around **$92,000**. This drop comes despite a **massive investment** from a Wall Street bank, which had raised hopes for Bitcoin's future. Now, as the crypto market braces for an **upcoming announcement** from Musk, legendary investor **Arthur Hayes** has forecasted a **market crash** in late March.

## Predictions from Arthur Hayes

Arthur Hayes, co-founder of the crypto derivatives platform **BitMex**, has written in his blog that it may be time to sell Bitcoin during the late stages of the first quarter and to wait for better liquidity conditions in the third quarter. He believes that Bitcoin's price movements are intricately linked to changes in **dollar liquidity**. As the Treasury's account nears depletion and the U.S. approaches the **debt ceiling**, he expects further downward pressure on prices.

## Market Reactions

Traders are currently **reassessing** the 2025 outlook for Federal Reserve interest rate cuts, driven by strong U.S. economic data. The sentiment in the market has shifted, and many now view Bitcoin as a **high-risk asset** again, especially considering the possibility of prolonged elevated interest rates.

Petr Kozyakov, CEO of **Mercuryo**, commented on the situation, noting that the anticipated market corrections have arrived sooner than expected. This shift indicates a return to cautious trading as enthusiasm about Bitcoin's potential as a strategic reserve fades.

![Bitcoin Price Dynamics](https://specials-images.forbesimg.com/imageserve/633c2741f081733a2a78b209/Federal-Reserve--Jerome-Powell--bitcoin--bitcoin-price--crypto--bitcoin-crash--crypto/960x0.jpg?fit=scale)

**Federal Reserve chair Jerome Powell is predicted to help support the bitcoin price until the end of the first quarter of 2025.**

With the crypto market's volatility and the looming economic pressures, investors are urged to stay vigilant and prepared for potential price fluctuations ahead. 


Legendary bitcoin and crypto investor Arthur Hayes has predicted when the bitcoin price and crypto market will crash...

Massive Sell-Off: Short-Term Bitcoin Holders Liquidate $2.4 Billion Amid Price Plunge

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Other Latest News

Unlocking Bitcoin's Future: The Launch of Layer Zero to Empower Global Youth

Grayscale's Bold Move: 90% of Large Cap Fund Now in Bitcoin and Ethereum!

Cardano's ADA Plummets 8% as Bitcoin Traders Look to Trump's Upcoming Inauguration

Is Bitcoin Heading for a $90K Crash? Key Insights and Trends Revealed!

ChatGPT's Bold Predictions for Bitcoin and Market Trends in 2025 Revealed!

The Heartbreaking Battle for £600 Million: A Bitcoin Miner’s Quest for Justice

Is It Time to Panic? Arthur Hayes Predicts Bitcoin Price Crash Ahead!

Other Latest News

Unlocking Bitcoin's Future: The Launch of Layer Zero to Empower Global Youth

Grayscale's Bold Move: 90% of Large Cap Fund Now in Bitcoin and Ethereum!

Cardano's ADA Plummets 8% as Bitcoin Traders Look to Trump's Upcoming Inauguration

Is Bitcoin Heading for a $90K Crash? Key Insights and Trends Revealed!

ChatGPT's Bold Predictions for Bitcoin and Market Trends in 2025 Revealed!

The Heartbreaking Battle for £600 Million: A Bitcoin Miner’s Quest for Justice

Is It Time to Panic? Arthur Hayes Predicts Bitcoin Price Crash Ahead!