In what can be viewed as a great setback for the US crypto market, there has been a substantial dip caused due to the US government allegedly selling 9,800 Bitcoins (BTC), which was approximately worth $277 million, according to certain reports. The Bitcoin in question was annexed by the US Government during the Silkroad case. The alleged humongous sale made by the US Government has snowballed into a bigger phenomenon with prices of Bitcoin dipping per minute. It is deemed one of the most significant sales of BTC made by the government.
The downward spiral comes after a post-CPI report from the Federal Reserve of reaching the $28,000 level, followed by the gigantic sale of $277 million worth of Bitcoin. Independent analysts and research firms such as CryptoQuant and Arkham are viewed to be contesting the transaction. Similar transactions made by the US Government, associated with the sale of humongous amounts of Bitcoin have created controversy in the past and likewise have sent a ripple effect of panic and uncertainty among the investors.
Certain analysts however are advising investors to take the retrenchment with a pinch of salt as Bitcoin bounced back and even climbed to reach an average support at $27,200 from a dip of 0.7%. The recent sale however has certainly raised a lot of eyebrows concerning the government’s intentions of selling approximately 200,000 BTC, which it still possesses. If such a thing were to happen, the crypto market could see prices dropping under $10,000 in the blink of an eye.
It is also alleged that the US Government has, in the past, sold 9,800 Bitcoin during March, which it seized from cyber criminals conducting illegal business on the Silk Road website, with Bitcoin being valued at approximately $215 million. This is not it, as per some court filings, the Government plans to further sell 31,700 BTC in relation to the SilkRoad incident, which was viewed as an online marketplace facilitating the operation of illegal activities and was taken over by law enforcement agencies in 2013. This has thrown a wet blanket on the Bitcoin bull run and can bring BTC’s prices to a new low.
On the other hand, the Chinese Government may pull a similar card which can lead to further instability in the crypto market, in lieu of its recent crackdown that led to the government seizing substantially large sums of crypto. This anticipated move on the part of the Chinese government can disrupt the crypto industry across the world and could shake up the current and potential investment patterns.