Samourai Wallet Co-Founder Sentenced to Four Years for Crypto Money Laundering

Bitmain, a leading Chinese Bitcoin mining hardware manufacturer, is currently under investigation by U.S. federal authorities over national security concerns. The scrutiny arises from potential risks related to espionage or sabotage, particularly in ventures backed by the Trump family. Bitmain has denied any wrongdoing amidst these allegations.

Michael Saylor, CEO of Strategy (MSTR), has publicly dismissed concerns regarding potential outflows linked to MSCI indices, asserting the company's strong commitment to Bitcoin. He highlighted that Strategy operates a $500 million software business alongside a $7.7 billion Bitcoin-backed digital credit program, reinforcing confidence in their Bitcoin strategy.

Bitcoin's price experienced a sharp decline, plunging to $83,000, which reflects stress levels reminiscent of the FTX crisis. This drop is attributed to a surge in market volatility and capitulation among short-term holders, indicating a fragile market environment.

Bitcoin's price is currently under pressure as long-term holders (LTHs) are distributing their assets. The rising VDD multiple and falling long-term holder supply indicate that there has been no capitulation yet among these investors. Analysts are questioning whether this dip signals a new bear market or a temporary setback.

JPMorgan has indicated that Michael Saylor's strategy could lead to significant outflows, estimated between $2.8 billion and $8.8 billion, if MSCI excludes MicroStrategy (MSTR) from its major equity indices. This potential exclusion is set to be decided on January 15, raising concerns about the viability of Saylor's bitcoin-leveraged strategy.

Billionaire investor Ray Dalio has reiterated his skepticism towards Bitcoin, maintaining that he has only allocated about 1% of his portfolio to the cryptocurrency for several years. He cites structural challenges as a barrier to Bitcoin's viability in the long term.

Bitcoin's price has dropped to $86,610, marking a decline of over 1% in the past 24 hours. This significant downturn occurs amidst a backdrop of extreme fear in the market, reflecting ongoing volatility and uncertainty in the cryptocurrency sector.

Congressman Warren Davidson has introduced the Bitcoin For America Act, allowing Americans to pay taxes in Bitcoin to support a Strategic Bitcoin Reserve. This initiative aims to integrate cryptocurrency into federal financial operations, promoting the use of digital assets in the economy.