Bitcoin Struggles for Momentum as DOJ Seizes $15B; Corporate Treasury Accumulation and ETF Flows Offer Mixed Signals

Bitcoin is showing renewed volatility as it struggles to regain momentum amid a convergence of major fundamental and market-driven developments. After a choppy session in which Bitcoin traded around $111,600 and slipped more than 1%, investors are parsing a mix of negative macro headlines and bullish structural flows.

On the enforcement front, the United States Department of Justice (DOJ) unsealed a landmark forfeiture of 127,271 BTC valued at about $15 billion, attributed to a large-scale 'pig butchering' fraud network. The indictment names Mr. Chen Zhi as the alleged mastermind behind the Cambodia-based Price Group. Authorities characterized this seizure as one of the largest in U.S. history. The FBI's New York field office, represented by Mr. Christopher Raia, highlighted the scale and prevalence of these scams and emphasized that law enforcement will pursue the largest cases to 'cut off the head of the snake'. The DOJ action injects a strong enforcement narrative into markets and raises fresh questions about illicit flows and on-chain provenance.

At the same time, institutional adoption shows resilience. A new Q3 report from Company Bitwise Asset Management revealed that the number of public companies holding Bitcoin climbed by 38% between July and September, reaching 172 firms. According to Bitwise, corporate Bitcoin holdings now total over 4.8% of all Bitcoin supply and are worth roughly $117 billion, a 28% quarter-over-quarter increase. Mr. Hunter Horsley (Company Bitwise) and analysts like Ms. Rachael Lucas (Company BTC Markets) interpret these figures as evidence that treasuries are accumulating Bitcoin not for short-term speculation but as a strategic reserve asset—supportive for long-term adoption narratives.

Spot ETF flows added another important layer to the market picture. On the day Federal Reserve Chair Mr. Jerome Powell hinted at the Fed approaching the end of quantitative tightening and preparing for potential rate cuts, US spot Bitcoin ETFs recorded net inflows of about $102 million. Company Fidelity's FBTC led inflows with roughly $132 million, while Company BlackRock's IBIT posted modest outflows. Total net assets across Bitcoin ETFs rose to about $153.55 billion, representing nearly 6.82% of Bitcoin's market cap—an important structural backstop that can underpin price discovery.

Despite these supportive elements, short-term price action remains fragile. Bitcoin saw a rapid sequence of sharp moves last week amid escalating US-China trade tensions after Mr. Trump threatened sweeping measures that rattled global risk appetite. The resulting risk-off environment pressured equities, commodities, and cryptocurrencies; the Nasdaq plunged and traders liquidated billions in crypto long positions over a compressed time frame. Veteran trader Mr. Peter Brandt warned that another significant correction remains a plausible path before BTC can resume a sustained rally toward previous highs.

Technical and market outlook: Price remains range-bound with clear intraday swings between roughly $109,900 and $125,700 over the past two weeks. Key risk factors include geopolitics, coordinated regulatory or enforcement actions, and macro liquidity. Key support and resistance zones are defined by recent intraday lows (~$109,945) and highs (~$125,750). Institutional accumulation, ETF inflows, and potential Fed easing are constructive tailwinds, but forced liquidations and headline-driven selling can produce sharp drawdowns.

Conclusion: The present market reflects a tug-of-war between structural adoption and headline-driven volatility. The DOJ seizure is a sober reminder of criminal exploitation risks and may temporarily increase selling pressure on on-chain addresses linked to illicit activity. Conversely, rising corporate treasury adoption documented by Company Bitwise and renewed ETF inflows suggest growing institutional conviction. Traders and investors should monitor on-chain forfeiture activity, corporate disclosures, ETF flow reports, and Fed communications closely. For now, expect choppy trading and heightened sensitivity around major macro and enforcement headlines.