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Bitcoin’s price trajectory this week remains volatile. After a sharp fall below $65,000, its rebound to $69,000 was brief. Nonetheless, this recovery has sparked significant discussion within the community.
The drop is primarily attributed to the US government’s sale of Bitcoin reserves seized from Silk Road, with plans for four similar sell-offs in 2024, causing serious concern among traders. However, historical data suggests that market trends often go against the public’s expectations.
Edge Bitcoin Traders
According to Santiment, many attribute the recent drop to the US authorities disclosing they sold nearly 10,000 Bitcoins seized from Silk Road. This sparked concerns among traders, with the expectation of four larger sell-offs in 2024 exacerbating these worries.
However, Santiment’s analysis highlighted a significant trend—interest in Silk Road surged, corresponding with subsequent market rises.
This phenomenon suggests the existence of a contrarian indicator, where market trends often run counter to general sentiment. Therefore, the on-chain analytics firm indicates that if fear persists, the cryptocurrency market’s prices could rise further.
#Bitcoin rebounded to over $69,000 after dropping below $65,000 two days ago. According to most in the #crypto community, the culprit for the downturn was the US authorities admitting to selling nearly $10,000 worth of BTC from #silkroad… pic.twitter.com/PiCrZo2YaI
– Santiment (@santimentfeed) April 4, 2024
Silk Road Seized Bitcoin Sale
Earlier this week, a wallet identified with the US government transferred a large reserve of Bitcoins.
The previously confirmed sale occurred in March 2023, when they disposed of 9,861 BTC out of the approximately 50,000 BTC related to the dark web market seized at the end of 2022, yielding $216 million.
Of the recently transferred Bitcoins, about 2,000 were sent to a wallet associated with Coinbase, while the rest were moved to another wallet deemed government-owned by Arkham Intelligence.
The primary wallet address associated with US authorities currently holds 29,799 BTC, valued at approximately $1.98 billion.
Sentiment: Negative
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