The US government’s Bitcoin sale has triggered market speculation but market experts believe this offloading is unlikely to impact the market significantly. Recently US authorities transferred 4,000 BTC seized from Silk Road on Coinbase Prime sparking fears of selling pressure. CryptoQuant explained that Coinbase Prime manages much larger volumes of Bitcoin daily.
The exchange handles between 20,000 to 49,000 BTC during high spot ETF inflows and 6,000 to 15,000 BTC during low inflows. So, the sale of 4,000 BTC by the government is relatively small compared to these volumes. CryptoQuant suggests these sales are not as impactful as some might think.
The US gov’t sold 4K Bitcoin today, but less likely to impact the market. Coinbase Prime handled 20-49K BTC in sell-side liquidity daily during high spot ETF inflows and 6-15K daily during low spot ETF inflows. Posting this because I’m tired of “gov’t selling” FUDs.
Analyzing Bitcoin’s recent market activity and price levels, the dominant crypto faced rejection around $62,000, a key resistance level, and experienced a slight sell-off. At press time, BTC is holding steady at around $61,000, a psychologically and historically significant level, with the potential for a retest of lower levels around $59,900.
Bitcoin Stuck at $61K – What Traders Need to Know
Besides that, market observers have also noted unusual buying activity on Binance and significant selling on Coinbase. The timing of Coinbase’s sell-off is reflected in the derivative data. Moreover, the funding rate has turned positive, which means that long positions are being funded, indicating more leveraged long positions.
So, it will be interesting to see whether Binance’s spot demand is sustainable or whether it will only last for a short time and potentially move the price towards the liquidation cluster. The game plan and key levels are clear, wrote one expert.
Meanwhile, Florida Republican Congressman Matt Gaetz recently introduced a bill that would require the treasure dept to accept tax payments in Bitcoin. At present, only Colorado allows the use of cryptocurrency to pay taxes. The other states waiting in line to approve the payment are Utah, New Jersey, and Kentucky.