40.000 Bitcoin Owned by the US Government Begins to be Moved, Will It be Sold?

Tens of thousands of Bitcoin confiscated by the US government began to be moved. (Photo; Doc. Coin68)

JAKARTA - The crypto market entered early 2021 with a significant upward trend, especially for Bitcoin (BTC) which hit a record high in history at a price of IDR 984 million per coin in April. However, since early May, the crypto market has experienced a sizeable decline and continues to show high volatility until now.

Bitcoin, the world's largest cryptocurrency, has been under some selling pressure in the past week. Based on data from CoinMarketCap, Bitcoin is being traded at IDR 340 million at the time this news was written. The price of BTC is down 2.51 percent in the last 24 hours. Meanwhile, in the past two weeks, BTC has fallen 8.6 percent. This decline is of concern to market participants as the price of Bitcoin continues to show weakness on the charts.

On-chain data provider Glassnode also recently reported that nearly 40.000 Bitcoins from a wallet related to a US Government law enforcement seizure are currently in motion. Some of them have even moved to the Coinbase crypto exchange. Glassnode noted that around 9.861 BTC seized from the Silk Road hackers has been sent to their Coinbase cluster.

Popular crypto analyst Ali Martinez reports that the total number of Bitcoin addresses holding more than 1.000 Bitcoins has also fallen over the last week. Nearly 24 Bitcoin addresses have redistributed their Bitcoins and left the network over the last week. This shows that big investors are selling their Bitcoins.

As Bitcoin continues to fall below its crucial support level, some analysts predict that the price of BTC could drop further below 20.000 US dollars. Macro factors are also not in favor of further rally for now. Fed Chair Jerome Powell said that the central bank will continue raising interest rates and is committed to bringing inflation below 2 percent. This indicates that Bitcoin will face greater challenges in the future.

However, there is also positive news amid this selling pressure. On Tuesday, a judge in a US court railed against the SEC for its rejection of spot Bitcoin ETFs. As a result, GBTC's share price strengthened further. This shows that market participants still see potential in crypto assets, even though Bitcoin is facing considerable challenges at the moment.

In recent weeks Bitcoin has been under selling pressure in the last week and BTC price continues to show weakness on the charts. Macro factors are also not in favor of further rally for now. However, there is also positive news amidst this selling pressure, namely a judge in a US court took the SEC for its rejection of spot Bitcoin ETFs. This shows that crypto assets still have potential in the future.