- Bitcoin is under selling pressure below $30,000 with analysts predicting a drop to $25,000. On the other hand, miner earnings are seeing an upward trend.
- The US government is likely to sell its 41,491 bitcoins in four separate batches later this year, which could add selling pressure to BTC.
After a strong rally above $30,000 over the past week, the world’s largest cryptocurrency Bitcoin (BTC) has come under heavy selling pressure. At press time, Bitcoin (BTC) is trading at $29,820 with a market cap of $577 billion.
Some market analysts have surfaced in anticipation of what could be the next move for BTC. Considering that the bitcoin price is already up more than 80 percent since the beginning of 2023, there could be a possibility of some kind of pullback in bitcoin. As a result, analysts are predicting that bitcoin price could fall further as low as $25,000.
This year in 2023, Bitcoin managed to weather major events like the banking crisis in the US and Europe. Also, Bitcoin investors managed to successfully overcome other hurdles such as persistent inflation and rising interest rate.
The broader consensus in the market is that Bitcoin has started to decouple from the rest of the macro indicators, although this may not be entirely the case. As we know, the US government is very critical of the crypto space and there could be more crackdowns on the industry this year.
Therefore, the upcoming US government actions could trigger potential selling pressures in the near term. Popular crypto analytics firm CryptoQuant has identified four key dates, respectively in May, August, October and December of this year, when it expects additional selling pressure on Bitcoin, followed by US government announcements.
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US government sells bitcoins
The US government has a good stash of Bitcoin holdings, most of which have been confiscated due to illegal activity. Last month, on March 14th, the US government sold its first batch of bitcoin holdings.
Meanwhile, the US government is likely to sell another 41,491 bitcoins in four separate batches. Considering the 73-day sale interval between two batches, the next sale will be on May 26 next month. This interval is crucial in understanding a possible pattern in the US government’s sell-off strategy. Thus, the next sale dates by the US government would be August 7, 2023, October 19, 2023, and December 30, 2023. In its blog post, CryptoQuant mentions:
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Dividing the number of days in a year by the number of batches gives 73 days, which is exactly the day the first batch was sold. Will there be a pattern every 73 days as the remaining batches are sold or is it just coincidence? Only time can tell.
On the other hand, Bitcoin miners are also seeing a jump in revenue after facing massive turbulence over the past year. Last year, on June 1, 2022, when BTC was trading at $31,000, Bitcoin miners’ earnings were $27 million. Now, on April 17, 2023, miners recorded $29.78 million in revenue while BTC price is trading near $30,000. This is a healthy sign that Bitcoin miners are seeing a good surge in revenue again.
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