– The US government planned to sell its BTC holdings over the next year.
– Markets may be temporarily affected by these sell-offs but traders remain bullish for now.
The US government has been very critical of the crypto space in recent months. The regulatory issues surrounding space, coupled with scams that have impacted the general population, have made the US government more cynical about the cryptocurrency market and bitcoin [BTC].
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The US wants to sell its BTC holdings
The cynicism is one reason why the US decided to sell its BTC holdings. The government acquired these bitcoins through three cases. These include the Mt.Gox scandal, the Bitfinex hack, and James Zhong’s bitcoin seizure.
The US government is now down to 41,491 BTC as some were sold earlier this year on March 14th. The remaining coins will be sold in four batches later in the year.
According to Maartunn, a market watcher at CryptoQuant, dividing the number of days in a year by the number of batches gives us 73 days. Interestingly, the first batch was sold on the 73rd day of 2023.
If a sales pattern emerges from the US government, we may see sales of the remaining lots every 73 days. And this can have a negative impact on BTC prices in the short-term, allowing short sellers to potentially benefit.
Source: CryptoQuant
However, at press time, traders were not showing any bearish behavior. Glassnode data further showed that despite rising prices, the put-to-call ratio for Bitcoin has fallen. This suggests that there are more call options than put options on the exchanges at press time.
In addition, an increase in the number of call options also indicates that traders believe that the price of Bitcoin will continue to rise.
Source: Glassnode
Some “miner” issues
Although traders have been observed to be optimistic about Bitcoin’s future, the same could not be said for miners. According to data from Glassnode, the miner outflow multiple hit a 1-month high. This suggests that miners have sold most of the BTC they mined.
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In addition, the decrease in fees earned by miners contributes to this situation. Data from Blockchain.com shows that total fees generated by transactions have dropped from $1.2 million to $653,210 over the past few weeks.
It remains to be seen whether the increasing selling pressure on miners will have a significant impact on future BTC prices.
Source: Blockchain
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