The U.S. authorities reportedly moved 30,174 Bitcoin worth $2.1 billion that was taken from the Silk Road black web marketplace to cryptocurrency exchange Coinbase today, causing a jolt in the cryptocurrency markets, according to Watcher Guru.
JUST IN: 🇺🇸 US Government transfers 30,174 #Bitcoin worth $2.1 billion seized from Silk Road to Coinbase.
— Watcher.Guru (@WatcherGuru) April 2, 2024
From its cryptocurrency seizure stockpile, this was one of the biggest Bitcoin moves by the US government. Exchanges were struck with such a large volume that it caused fears of an impending sell-off, which caused prices to drop. Over the past day, Bitcoin fell 4.5% to almost $66,000, while the value of the entire cryptocurrency market fell 4.6% to $2.46 trillion.
For the U.S. government, a $2.1 billion Bitcoin sale would undoubtedly be considered a big dump. Bull market characteristics, however, might reduce this event’s negative effects. The next Bitcoin halving event, which historically has preceded large Bitcoin rallies by limiting new supply, is just a few days away for the cryptocurrency markets. Additionally, in January 2024, spot Bitcoin ETFs were approved in the United States, opening the door for fresh institutional investment in the biggest cryptocurrency in the world.
Even if the $2.1 billion Bitcoin sell-off is not to be taken lightly, given the fundamentally positive supply dynamics and possible inflow of demand from new investment vehicles, the overall direction of Bitcoin may still be bullish. The U.S. government’s sale might just be a great time to acquire Bitcoin before its next significant upswing.
Release: The purpose of this content is only to provide knowledge. Readers have to do their own research before making investment decisions.
