US Government Seizes $14.4 Billion in Bitcoin Amid Fraud Investigation

US Government Seizes Record Bitcoin: What Happens Now with $14.4 Billion?

The US government has recently seized Bitcoin worth over $14.4 billion, marking the highest amount ever confiscated by authorities in cryptocurrencies. This seizure is linked to an alleged global crypto fraud operation led by Cambodian businessman Chen Zhi, who is facing charges of wire fraud and money laundering from US prosecutors.

The US Department of Justice (DOJ) has requested to permanently transfer the seized crypto assets into state ownership. However, there is currently no official plan regarding the fate of the Bitcoins. A central question remains whether the Bitcoins will be returned to the victims of the fraud operation or if they will flow into the newly established strategic Bitcoin reserve of the USA, initiated by an executive order from President Donald Trump in March 2023.

“I believe that we have completed the five-wave upward movement and are now entering a bear market that will last at least until the end of 2026,” said Jon Glover, Elliott Wave analyst and Chief Investment Officer of Ledn.

Some crypto-friendly voices in Congress, such as Republican Senator Cynthia Lummis, have advocated for utilizing the assets as a strategic reserve. Lummis emphasizes the need to convert criminal proceeds into national values and seeks legislative regulations for the storage and use of seized cryptocurrencies.

Legal expert Scott Johnsson estimates that the US will retain a significant portion of the seized Bitcoins. However, he warns of lengthy legal proceedings necessary to clarify how much of the Bitcoins will ultimately be available for distribution. The alleged fraud spans dozens of countries, complicating the legal challenges further.

Blockchain analysts from Arkham Intelligence estimate that the US government already holds Bitcoin worth around $22 billion. Should the seizure from Chen Zhi be fully added, the USA could become the largest state Bitcoin holder in the world. Despite a presidential decree, the Treasury Department has yet to release official information regarding existing Bitcoin holdings.

In summary, the future of the seized Bitcoins remains uncertain, and legal and political discussions regarding the use of these assets are expected to take some time.

Bitcoin Bear Market Looming? Price Could Fall to $70,000 or Lower, Expert Predicts

Elliott Wave expert Jon Glover predicts a significant Bitcoin bear market that could last until the end of 2026. According to Glover, the recent decline from $126,000 to $104,000 indicates that the Bitcoin bull run, which began in early 2023, is over.

Glover forecasts that the upcoming bear market could push prices down to $70,000 or lower, representing a potential decline of over 35% from the current market price of approximately $108,000. He states, “I expect Bitcoin to trade between $70,000 and $80,000 and possibly even lower.”

Glover's analysis is based on the Elliott Wave Theory, which suggests that investor psychology moves in predictable cycles. The bullish five-wave pattern of Bitcoin peaked earlier this month at over $126,000. However, Glover warns that failure to maintain levels above $125,000 could weaken the upward trend.

Supporting Glover's bearish outlook, data from Amberdata shows that BTC put options listed on Deribit, which provide downside protection, are trading at a premium compared to calls, indicating that some traders are preparing for downward risks extending into next year.

In conclusion, Glover's predictions align with historical trends, where Bitcoin typically reaches a peak about 18 months after each halving event, followed by a bear market.

Bitcoin Supply on Exchanges Hits 6-Year Low — Is Now the Time to Buy the Dip?

The Bitcoin price continues to fall as the crypto market adjusts after its recent all-time high, sparking renewed debate among investors about whether this is the ideal moment to buy the dip or if further downward pressure is imminent. Bitcoin supplies on exchanges have dropped to a six-year and four-month low, indicating increased accumulation by investors.

Since early October, approximately 45,000 BTC, worth over $4.81 billion, have been withdrawn from exchanges. This consistent outflow reflects investors' belief that lower prices present buying opportunities amid broader market uncertainties.

The current 30-day market value-to-real value (MVRV) of Bitcoin stands at -7.56%, suggesting that investors who purchased in the last month are holding approximately 7.5% unrealized losses. Historically, negative MVRV values have marked attractive entry points for long-term investors.

At the time of publication, Bitcoin is trading at $106,947, below the critical support level of $108,000. If accumulation continues and investor sentiment improves, Bitcoin could reclaim the $108,000 mark, potentially pushing towards $110,000 and beyond.

In summary, the current market conditions present a critical juncture for Bitcoin investors, with the potential for both recovery and further declines.

Crypto Market Weakens – Will Bitcoin Fall Below $100,000?

Investors are nervously watching the crypto market, questioning whether the bottom has been reached or if Bitcoin's price will dip below $100,000. The overall market capitalization has slightly decreased by 0.2%, remaining under $4 trillion, while Bitcoin struggles around the $107,000 mark.

Despite Bitcoin's stability heading into the weekend, the market remains tense. Analysts predict potential further declines, with some traders suggesting a drop to $95,000 or even $91,000 before a new bottom is established. However, there are also encouraging signals, as the Relative Strength Index (RSI) indicates a waning selling momentum.

In conclusion, the outlook for Bitcoin remains uncertain, with both bearish and bullish signals present in the current market environment.

Bitcoin: Now or Never?

The crypto king stands at a critical crossroads. Following a sharp drop from October's high of over $122,000, Bitcoin is battling important support levels while billion-dollar deals and regulatory developments shape the future of the digital currency.

Technical indicators are showing a short-term bearish trend, with the 20-day moving average around $116,000 acting as a significant resistance level. The critical support level at $104,000 could determine the market's direction.

In the week leading up to October 17, $1.23 billion flowed out of US Bitcoin ETFs, signaling a decline in institutional confidence. As major players like Google invest in sustainable Bitcoin mining, the question remains whether Bitcoin can overcome its current consolidation phase.

In summary, Bitcoin investors face urgent decisions as the market navigates through turbulent waters, with potential for both recovery and further declines.

Bitcoin Price Forecast: What the Gold Rally Says About Bitcoin

As Bitcoin's price fluctuates, analysts are drawing parallels between the current market conditions and the recent rally in gold prices. The correlation between these two assets may provide insights into Bitcoin's future performance.

With ongoing market volatility, investors are advised to stay informed and consider the implications of external factors on Bitcoin's price trajectory. The interplay between traditional assets like gold and cryptocurrencies could shape investment strategies moving forward.

In conclusion, the relationship between gold and Bitcoin may offer valuable insights for investors navigating the current market landscape.

Sources:

• US-Regierung beschlagnahmt Rekord-Bitcoin: Was passiert jetzt mit 14,4 Mrd. $?
• Bitcoin (BTC) Bärenmarkt zeichnet sich ab? Preis könnte auf 70.000 $ oder darunter fallen, sagt Experte voraus
• Bitcoin-Angebot an Börsen auf 6-Jahres-Tief — jetzt den Dip kaufen?
• Krypto-Markt schwächelt – fällt Bitcoin unter 100.000 US-Dollar?
• Bitcoin: Jetzt oder nie?
• Bitcoin Kurs Prognose: Was die Gold-Rallye über Bitcoin aussagt