Bitcoin Price Plummets As US Government Transfers $2B In Seized Silk Road BTC, Coincidence?

The Bitcoin market is buzzing with excitement following the US government’s recent decision to move seized Bitcoins linked to the notorious Silk Road marketplace. This announcement comes at a crucial moment for Bitcoin’s price, which has been finding it difficult to hold its ground above the $70,000 mark since reaching its new all-time high of $73,700 on March 14.

With Bitcoin, the leading digital currency, undergoing another price adjustment, there’s been significant buzz about a possible government sale following the recent seizure and transfer of large amounts of Bitcoin.

Seized Silk Road BTC On The Move

Based on cryptocurrency transaction records, a digital wallet believed to be connected to the U.S. authorities moved approximately 30,175 Bitcoins – previously confiscated from the illegal Silk Road marketplace – to a new destination.

In 2012, James Zhong obtained over 50,000 Bitcoin from the illegal marketplace Silk Road, which was later seized by the US Department of Justice (DOJ). This confiscation represented the largest cryptocurrency haul in DOJ history.

Bitcoin Price Plummets As US Government Transfers $2B In Seized Silk Road BTC, Coincidence?

The US government has previously sold Bitcoin seized from criminal activities. In March 2022, it disposed of 9,800 Bitcoin, intending to sell an additional 41,500 BTC. However, the more recent transfer of 30,175 BTC from Silk Road’s Bitcoin addresses has sparked speculation about what will happen to these funds and how they might influence the current Bitcoin price correction.

Benjamin Skew, an expert in on-chain data, shared his analysis on social media about the confusion over Bitcoins from the Silk Road being moved to Coinbase for sale. However, upon further investigation, Skew explained that most of the significant funds were actually transferred to a newly created wallet which has yet to show any activity.

Instead of this: “However, Skew mentioned that 2,000 BTC out of the total amount were moved to an alleged Coinbase wallet without specifying reasons, while the remaining amount was transferred to a newly established wallet.”

200EMA Support Crucial For The Bitcoin Price

Currently, Bitcoin’s price isn’t showing much upward push as it encounters obstacles trying to break through the significant $70,000 mark. Yet, optimism persists.

Crypto expert Ali Martinez underlines the significance of the 200-episode moving average (EMA) on Bitcoin’s 4-hour chart. For Martinez, this tool has served as robust support since February’s early days and remains pivotal in checking any additional price declines.

The significance of the 200-day moving average (200EMA) lies in its ability to initiate a price bounce back or instigate further declines for Bitcoin. According to Martinez, if the 200EMA persists as a robust support level, it indicates a high likelihood of a price increase. This outcome could reinvigorate bullish sentiment and possibly push Bitcoin’s value beyond $70,000.

If the 200-day moving average (200EMA) gets breached, as shown in the graph below, the analyst warns that this may cause additional downward pressure on Bitcoin’s price and possibly result in more losses.

Bitcoin Price Plummets As US Government Transfers $2B In Seized Silk Road BTC, Coincidence?

The current price of Bitcoin (BTC) is around $65,390, representing a 5% decrease within the last day and a more substantial drop of over 6% in the past week.

The market is keeping a close eye on whether the current crucial support level will hold up against more price decreases or if a rebound might take place before hitting that mark. However, it’s still unclear which situation will unfold.

Read More

2024-04-03 02:10