Sale of Confiscated Silk Road Bitcoin
The US government plans to auction off approximately $130 million worth of Bitcoin that was seized from the dark web marketplace Silk Road. The filing states that the United States intends to sell the forfeited property as directed by the Attorney General. Anyone who claims an interest in the property must file a petition within 60 days. Once all petitions are addressed or the filing period expires, the US will have clear title to the property.
Ongoing Selling Pressure on BTC
Bitcoin has faced significant selling pressure recently, resulting in a 20% correction over the past 10 days. This trend is expected to continue and intensify the selling pressure. Additionally, asset manager Grayscale has been transferring a substantial amount of Bitcoin to Coinbase, despite slowing down its selling activities. According to data from Arkham Intelligence, Grayscale recently sent an additional 10,000 BTC worth $400 million to Coinbase. Currently, Grayscale holds 510,682 BTC ($20.43 billion).
Ideal Buying Opportunities?
Market expert Adam Cochran offers insights into the recent price action and expectations for Bitcoin buyers. Cochran notes that aggregate open interest (OI) for BTC has decreased by 17% but remains higher than average during stable market ranges. Retail investors are driven by narratives surrounding ETFs and halving events, leading them to buy dips on leverage. However, many investors are waiting for a clear entry point. Cochran suggests that a sentiment reset and a decrease in open interest would provide a healthier market environment.
A Reset in Expectations
Cochran emphasizes the need for a reset in expectations and highlights that a period of doom and despair is necessary for market participants to reassess their positions. He suggests that a range between $35,000 and $37,000 BTC could be suitable for larger spot buys in the long term. However, a potential drop to the $28,000 to $32,000 range could provide ideal conditions for confident, leveraged deployment.
Hot Take: Bitcoin Faces Selling Pressure as US Government Plans Auction of Confiscated Silk Road Bitcoin
Bitcoin is experiencing selling pressure from various market players, including asset manager Grayscale and the US government. The government plans to auction off approximately $130 million worth of Bitcoin seized from Silk Road. This selling pressure has resulted in a 20% correction over the past 10 days. Market expert Adam Cochran suggests that a sentiment reset and a decrease in open interest would create a healthier market environment. Cochran notes that a range between $35,000 and $37,000 BTC could be suitable for larger spot buys, while a drop to the $28,000 to $32,000 range may provide ideal conditions for confident, leveraged deployment.
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