For the skin world, bitcoin (BTC) dropping $10,000 to $92,000, in a matter of days may sign the top of the bull run. A caveat to this might be that bitcoin continues to consolidate beneath a key psychological $100,000 threshold.
Unconfirmed reviews from DB Information recommend that the Division of Justice (DOJ) has been given the authority to liquidate 69,370 BTC ($6.5 billion) seized from the Silk Street market.
The report comes simply 11 days from President-elect Donald Trump’s inauguration. Trump has vowed to not promote any of the 187,236 BTC that’s nonetheless in possession by the U.S. authorities, in line with Glassnode information. Nearly all of the tokens within the authorities’s possession comes from the seizures on Bitfinex and Silk Street.
There are a number of causes that the fears of a sell-off could also be overblown: The reviews of 69,370 BTC being liquidated look like loads, and if offered, they’ll probably be offered in an orderly vogue as they’re requested to get the very best worth. On the identical time, the market already knew that this was a chance, so this might have already been baked in to market expectations.
Secondly, the market has absorbed over 1 million bitcoin since September. This may be proven by the lower in holdings by long-term holders, who’re outlined by Glassnode as buyers who’ve held bitcoin for longer than 155 days. As a cohort they now maintain 13.1 million BTC. Nevertheless, since September, the worth has gone from roughly $60,000 to over $100,000.
The final motive is that we’ve got earlier information on one other authorities promoting the same quantity of bitcoin. The German authorities offered roughly 50,000 BTC from mid-June to mid-July of 2023. The full worth of the cash was round $3.5 billion again then, round half the worth now.
Nevertheless, the market successfully front-ran the promoting and the worth bottomed out round July 7 at round $55,000 whereas the German authorities nonetheless had possession of not less than 25,000 BTC. Which exhibits this quantity of bitcoin doesn’t dictate the market.
