Bitcoin Price Drop Possibly Linked to US Government’s Seized Bitcoin Transaction to Coinbase
In the world of cryptocurrencies, the price of Bitcoin has always been a hot topic. Its value has fluctuated wildly over the years, often making headlines for its sudden drops and gains. Recently, the price of Bitcoin has experienced another significant drop, leading many to speculate on the cause.
One of the main arguments for the price drop is issues at various banks, including Silvergate & Silicon Valley Bank. However, a new report from CryptoQuant suggests that the US government may have played a role in the decline.
According to the report, a few hours before the sharp price drop, over 40,000 BTC were moved, with an age of 6-12 months. The transaction is linked to bitcoins seized by the US government because they are related to Silkroad. At least 9,000 bitcoins were sent to Coinbase, a popular cryptocurrency exchange.
Shortly after the transaction was executed, Coinbase Premium started to become strongly negative, indicating strong selling pressure from Coinbase. This is significant because it suggests that the transaction of seized bitcoins being sent to Coinbase may have caused extra selling pressure, contributing to the price drop.
It’s worth noting that it’s difficult to determine the exact impact that this transaction had on the price drop, as we cannot see what is happening on the exchange. However, the evidence suggests that it played a role.
This transaction marks the first time that we have seen seized bitcoin being sent to Coinbase, making it a significant event in the world of cryptocurrencies. It’s unclear whether this will have long-term effects on the market or if it’s just a temporary blip.
As the world of cryptocurrencies continues to evolve, it’s important to keep an eye on the actions of governments and major institutions, as they can have a significant impact on the market. The recent transaction of seized bitcoin is just one example of how these factors can influence the price of cryptocurrencies.
Read more:
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- Bitcoin’s Value Under Pressure As Miners Reduce Reserves