Bitcoin Price Plummets As US Government Transfers $2B In Seized Silk Road BTC, Coincidence?
03 April 2024 - 1:00AM
NEWSBTC
The crypto market is abuzz with speculation as the US government
recently moved significantly regarding seized Bitcoin (BTC) linked
to the infamous Silk Road dark web marketplace. This development
comes at a critical time for the Bitcoin price, which has struggled
to maintain its position above the $70,000 threshold after hitting
its current all-time high (ATH) of $73,700 on March 14. As
the largest cryptocurrency experiences yet another round of price
correction, the movement of these seized funds has triggered
intense speculation about a potential sell-off by the US
government. Seized Silk Road BTC On The Move According to on-chain
data, a wallet linked to the US government recently transferred
30,175 Bitcoin, seized from the Silk Road dark web
marketplace. Related Reading: Ethereum And Altcoins Crash:
Why Is This Analyst Super Bullish? This transfer follows the
earlier seizure of over 50,000 Bitcoin from James Zhong, who
illegally obtained the cryptocurrency from the Silk Road in 2012.
The US Department of Justice’s (DOJ) seizure of these funds marked
the largest cryptocurrency seizure in its history. This is not the
first instance of the US government moving Bitcoin obtained from
criminal cases. In March 2022, the government sold 9,800 Bitcoin,
with plans to sell an additional 41,500 BTC. However, the recent
transfer of the 30,175 BTC from Silk Road-related addresses has
raised questions about the fate of these funds and their potential
impact on the Bitcoin price correction. Benjamin Skew, an
on-chain data expert, took to social media to offer insights into
the situation. Skew clarified that although there is chaos
surrounding the Silk Road Bitcoin being sent to Coinbase for sale,
a closer examination reveals that the main funds were transferred
to a newly created wallet that remains inactive. However,
Skew stated that 2,000 BTC of the total amount was transferred to
the alleged Coinbase wallet for undisclosed purposes, while the
rest was sent to a newly created wallet. 200EMA Support
Crucial For The Bitcoin Price The Bitcoin price is currently
witnessing a lack of bullish momentum as the cryptocurrency
continues to face resistance in consolidating above the crucial
$70,000 threshold. However, there is still hope on the
horizon. Crypto analyst Ali Martinez highlights the
importance of the 200-epimetric moving average (EMA) on the 4-hour
chart of BTC. According to Martinez, this indicator has acted as
formidable support since early February and continues to play a
crucial role in preventing further downward movement. Related
Reading: Tether Buys 8,888 Bitcoin For $618 Million, But Why Is
Price Down? The focus on the 200EMA stems from its potential to
either catalyze a rebound or trigger more losses for Bitcoin.
Martinez stated that if the 200EMA continues to hold as strong
support, it signifies a significant probability of a price rebound.
This scenario would provide renewed bullish momentum and
potentially propel Bitcoin’s price above the $70,000 mark.
However, if the 200EMA is broken, as it was in mid-January, as seen
in the chart below, the analyst suggests that this could expose the
Bitcoin price to further downward pressure and potentially lead to
further losses. Bitcoin (BTC) is trading at $65,390, continuing its
recent price correction. Over the past 24 hours, BTC has
experienced a 5% decline; over the past seven days, it has seen a
significant drop of over 6%. The market closely monitors
whether the current key support level can sustain further price
drops or if a potential bounce will occur before reaching that
point. The outcome of these scenarios remains uncertain.
Featured image from Shutterstock, chart from TradingView.com
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