Bitget Daily Digest (January 10) | Grayscale adjusts $BTC and $ETH weights to 90%; Silk Road BTC sale not starting yet

Market highlights

1. A U.S. official confirmed to DB News that the Department of Justice (DOJ) has been given the green light to liquidate 69,370 BTC (worth approximately $6.5 billion) seized in the Silk Road case. The DOJ's request cited price volatility, and the liquidation will proceed in compliance with relevant regulations.

2. Trending sectors experienced a pullback, with $BUZZ leading the decline among AI agents. Other tokens like $ARC and $SWARMS also saw varying degrees of losses, while AI memecoins like $TURBO and $SHOGGOTH experienced relatively smaller declines. The DeSci sector presents mixed performance, with $HPO surging while the Hyperliquid ecosystem continues its pullback. Trump-related tokens have shown notable resistance to the downturn, with only minor declines observed .

3. Grayscale has adjusted the weightings of $BTC and $ETH in its portfolio to 90%, while reallocating the remainder to $XRP, $SOL, and $ADA. The firm has removed $AVAX from the index. The adjustment was made in response to the volatility of the CoinDesk Large Cap Select Index. 

4. $LLM, a SOL-based token, has seen a rapid increase in market cap, reaching $155 million. Inspired by the logo of $AI16Z, the token has sparked widespread discussion about its connection to ai16z. Some observers have compared it to what $FARTCOIN is to $GOAT. A prominent figure, "him," tweeted that he was blocked by Shaw, the co-founder of ai16z, with the caption "End of an era."

 

Market overview

1. Bitcoin briefly dropped to $91,000, touching a recent 4-hour support level before rebounding. The overall market showed signs of decline, with only $UNI among the top 50 assets, recording positive gains. Low-cap coins saw sharp increases, while $SUIHUB and $BUZZ led the drop.

2. U.S. stocks closed on Wednesday, while the British pound hit its lowest level in over a year. The yield on U.K. bonds also reached a 16-year high. Gold prices surged to their highest level since mid-December.

3. Currently standing at 92,460 USDT, Bitcoin is in a potential liquidation zone. A 1000-point drop to around 91,460 USDT could trigger over $190 million in cumulative long-position liquidations. Conversely, a rise to 93,460 USDT could lead to more than $279 million in cumulative short-position liquidations. With short liquidation volumes far surpassing long positions, it's advisable to manage leverage carefully to avoid large-scale liquidations. 

4. Over the past day, Bitcoin saw $4.06 billion in spot inflows and $4.57 billion in outflows, resulting in a net outflow of $510 million.

5. In the last 24 hours, $BTC, $ETH, $SOL, $DOGE and $XRP led in net outflows in futures trading, signaling potential trading opportunities. 

6. Latest data from SoSoValue: U.S. BTC spot ETFs recorded a single-day inflow of $588.2 million, bringing cumulative inflows to $36.368 billion, with total holdings reaching $106.816 billion. In contrast, ETH spot ETFs saw a single-day outflow of $15,900 with cumulative inflows of $2.522 billion, with total holdings at $11.741 billion. Outflows have decreased compared to the previous day.

 

Highlights on X

1. @Michael_Liu93: "Altcoin season" may be far off

The altcoin season has not truly begun yet. It may take at least another six months to a year for the altcoin frenzy to arrive. The start of altcoin rallies is closely tied to U.S. monetary policy. Once interest rates decrease, liquidity gradually flows from low-risk assets to high-risk assets, resembling a multi-layered pool. The current benchmark interest rate for the U.S. dollar remains high, and liquidity transmission just beginning. The transmission cycle, following Bitcoin's market cap dominance (BTC.D) reaching its peak, is far from complete. Historically, the altcoin season often begins nearly a year after interest rates hit their lows. Therefore, patience is key when strategically purchasing blue-chip altcoins, while remaining attentive to coin-specific on-chain opportunities. However, it's important not to rush into chasing hype. Investment returns tend to favor those who wait for the right timing.

X post: https://x.com/Michael_Liu93/status/1877282235948433833

2. 0xJeff: Tokenization of the Agentic Metaverse: Reshaping the rules of the virtual world

The Agentic Metaverse is transforming the virtual world through AI and tokenization. From Hyperfy's real-time building tools to the AI-NPC asset management systems of Virtuals and Infinity Ground, to Indiedotfun's ability to enable developers to quickly create and tokenize games, the ecosystem is evolving rapidly. It addresses the short attention span and tokenization paradox in Web3 games by injecting dynamic interactions and economic collaboration into the virtual world. This signals an immersive future driven by reinforcement learning and visual language models.

X post: https://x.com/Defi0xJeff/status/1877304490648547627

3. Biteye: All you need to know about the rise of AI agent frameworks, Launchpads, applications, and memecoins 

The AI agent sector has developed into various forms, with projects showing diverse characteristics based on different functions and application scenarios. This article analyzes in detail the four main categories: AI agent frameworks, AI Launchpads, AI agent memecoins, and AI agent applications.

X post: https://x.com/BiteyeCN/status/1877249880021942569

4. Traders: Following Trump's policy: Narratives and capital gaming in crypto world

Donald Trump's reelection and his proposals pushed Bitcoin over $100,000 and triggered an independent market trend driven by policy prospects. However, after the hype cooled down, market sentiment gradually weakened, and the macro situation and plans of the Federal Reserve resumed dominance. Cryptocurrency prices returned to volatility post-holidays, with wide fluctuations within a high-level price range becoming the new norm. From policy and capital to narrative, they are just the "1"; what truly drives the token price are the "0"s behind it. In the short term, the $92,000 – $102,000 range may become a key level, and there might be another opportunity for a price surge around Trump's inauguration, but it must be remembered that opportunities are always reserved for rational and restrained investors.

X post: https://x.com/Trader_S18/status/1877304605740249143

 

Institutional insights

1.CryptoQuant: BlackRock IBIT weekly net inflow hit $1 billion

X post: https://x.com/ki_young_ju/status/1877370117681455598

 2.Glassnode: BTC futures open interest shows declining speculative momentum

X post: https://x.com/glassnode/status/1877357584056824161

 3.Citi: The crypto industry could be primed for "alt-season" in 2025 after a strong year for Bitcoin

Read the full article here: https://markets.businessinsider.com/news/currencies/crypto-outlook-altcoin-ethereum-bitcoin-rally-federal-reserve-2025-1

 4.IntoTheBlock: CEX net outflows continued, investors favoring holding over panic selling

X post: https://x.com/intotheblock/status/1876915736666316833

 

News updates

1. Fox Business: U.S. Senate Banking Committee to launch subcommittee on digital assets.

2. Fed governor Michelle Bowman said she supported the December rate cut and that it represented the Committee's final step in the policy recalibration phase.

3. Donald Trump launched his NFT collection, Trump Bitcoin Digital Trading Cards, on the Ordinals protocol.

4. IMF recommended that Kenya develop a clear regulatory framework for cryptocurrencies.

5. Canadian Prime Minister front-runner Pierre Poilievre advocates for crypto and DeFi.

6. U.S. CFTC Chair Rostin Behnam said crypto legislation will take six to ten months and subsequent rulemaking by federal agencies will take one year.

 

Project updates

1. The Aptos mainnet has integrated Chainlink oracles.

2. Circle: USDC bridge now supports Sonic Chain.

3. The Metis network is experiencing intermittent downtime and the sequencer is upgrading the L1DTL memory to address this problem.

4. VitaDAO's proposal for VITA's cross-chain to the Solana network has been approved.

5. Berachain's incentivized pre-deposit vault has exceeded $1.1billion in TVL.

6. MANTRA plans to tokenize $1 billion in real-world assets for DAMAC, a UAE-based real estate developer.

7.Fetch.ai launches a $10 million accelerator to support AI agent startups.

8. The travel booking platform Travala.com now supports payments using STX tokens.

9. Pendle airdrops $6.1 million in rewards to vePENDLE holders.

10. Ripple President Monica Long states that an XRP ETF could soon be launched

 

Recommended reads

Buzz ignites wealth effect: a comprehensive overview of DeFAI projects

DeFAI, the combination of DeFi and AI, uses AI technology to simplify complex DeFi interfaces and operations, simplifying participation for ordinary users and making DeFi more accessible. DeFAI has built a grand vision. In the future, users will manage their investment portfolios as easily as chatting with ChatGPT, thanks to AI agents and diverse AI-powered platforms. Everyone will have barrier-free access to decentralized markets.

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604484196

 

A close look into AI agents (Part 1): All you need to know about the rise of AI agent frameworks, Launchpads, applications, and memecoins 

The AI Agent sector is on the verge of explosive growth. As technologies mature and the market accelerates, AI agents will play an increasingly important role in the blockchain world. The articles explains how the the underlying logic of the on-chain economy is being reshaped, from tools to partners, and from individuals to communities.

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604483110