$130M Silk Road Bitcoin Stash To Be Sold By US Government
25 Janeiro 2024 - 5:00PM
NEWSBTC
Since mid-January Bitcoin (BTC) has been facing mounting selling
pressure from various market players. This includes asset manager
Grayscale, bankrupt crypto exchange FTX, and now, the US
government, which is set to auction off a substantial amount of
Bitcoin seized from the infamous dark web marketplace Silk Road.
Sale Of Confiscated Silk Road Bitcoin The US government has filed a
notice to sell approximately $130 million worth of Bitcoin
confiscated from Silk Road. The filing states that the United
States intends to dispose of the forfeited property as directed by
the United States Attorney General. Individuals or entities, except
for the defendants in the case, claiming an interest in the
forfeited property must file an ancillary petition within 60 days
of the initial publication of the notice. Once all ancillary
petitions have been addressed or the filing period has expired, the
United States will obtain clear title to the property, enabling
them to warrant good title to subsequent purchasers or transferees.
Related Reading: XRP Faces Bearish Pressures Amid Market Downturn:
Analysts Divided On Next Move The ongoing selling pressure on BTC
has resulted in a sharp 20% correction over the past 10 days. This
trend is expected to continue and further amplify the selling
pressure. Adding to the situation, asset manager Grayscale, while
slowing down its selling activities, continues to transfer a
significant amount of Bitcoin to Coinbase. According to data
from Arkham Intelligence, Grayscale recently sent an additional
10,000 BTC worth $400 million to Coinbase. Since the approval
of the Bitcoin spot exchange-traded fund (ETF), Grayscale has
deposited a total of 103,134 BTC ($4.23 billion) to Coinbase Prime.
Currently, Grayscale holds 510,682 BTC ($20.43 billion). Ideal
Buying Opportunities? Adam Cochran, a prominent market
expert, has provided insights into the recent price action and the
expectations of Bitcoin buyers. Cochran highlights that aggregate
open interest (OI) for BTC has decreased by 17% from recent highs
but remains around 20% higher than the averages observed during
more stable market ranges. Cochran notes that the market has
seen attempts to catch falling prices, suggesting a mix of
“sophisticated” and leveraged buyers. Cochran further observes that
retail investors are driven by narratives surrounding the ETF and
halving events, leading them to buy dips on leverage. However, many
investors remain unconvinced about the market’s direction and are
waiting for a clear entry point, according to Cochran’s
analysis. Notably, Cochran highlights that the current
funding rates do not indicate a bearish sentiment, even in options
trading, suggesting an expectation of a bottom formation shortly.
The market’s dynamics are influenced by emotions and probabilities,
and Cochran believes that too many participants are overexposing
themselves emotionally by trying to catch the bottom of the market
on each dip. This behavior has increased the likelihood that
the recent price action may not mark the bottom yet. Cochran
suggests that a sentiment reset, a decline in the 3-month
annualized basis by around 25%, and a further decrease in open
interest would provide a healthier environment for major plays in
the market. Related Reading: Helium (HNT) Heats Up: 21% Jump After
Telefónica Deal Ignites Growth Ultimately, Cochran emphasizes the
need for a reset in expectations, highlighting that a period of
doom and despair is necessary for market participants to reassess
their positions. Cochran points out that a range between
$35,000 and $37,000 BTC could be a suitable level for larger spot
buys in the longer term. However, Cochran also notes that a
potential drop to the $28,000 to $32,000 range could provide ideal
conditions for confident, leveraged deployment. Currently, BTC is
trading at $39,800, up a slight 0.6% in the past 24 hours, but down
over 14% in the past fourteen days. Featured image from
Shutterstock, chart from TradingView.com
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