Bitcoin Held by US Government May Bring Additional Selling Pressure

04/17/2023 02:02 • Metaverse Matters • 121 views

According to reports, according to blockchain analysis company CrvptoQuant, Bitcoin held by the US government may bring additional selling pressure, with four key dates being May 26, August 7, October 19, and December 30.

Analysis: Bitcoin held by the US government may bring additional selling pressure

Bitcoin, the world’s most popular cryptocurrency, continues to gain mainstream acceptance as countries, financial institutions, and businesses integrate it into their operations. However, according to blockchain analysis company CrvptoQuant, the US government’s Bitcoin holdings may cause a significant market impact.

Understanding the US Government’s Bitcoin Holdings

The US government has seized and auctioned Bitcoin through various enforcement agencies like the Department of Justice’s Asset Forfeiture Unit and the Internal Revenue Service. This is in line with the US government’s policy of selling assets seized from criminals and using the proceeds for public funds.
As of May 2021, the US government is holding over 100,000 Bitcoins seized from various criminal activities, which is currently worth around $3.6 billion. The government’s Bitcoin holdings, coupled with the upcoming selling dates, could have a significant selling pressure impact on the cryptocurrency market.

The Four Key Selling Dates

CrvptoQuant has identified four key selling dates that could spike Bitcoin selling pressure: May 26, August 7, October 19, and December 30. On these dates, the Bitcoin seized by the US government may be sold, further fueling the crypto’s selling pressure.
It should be noted, however, that market experts have stated that the selling process might not occur on these exact dates. The US government may sell the cryptocurrency on a different schedule or may even decide to hold it for a more extended period.

How Will This Affect the Market?

The selling of Bitcoin by the US government could significantly impact the market, with prices expected to drop if the assets are sold in bulk. Experts believe that this may lead to a temporary market crash, causing panic among investors.
However, some analysts have predicted that the Bitcoin market may sustain the selling pressure impact, especially considering the current bull run. As cryptocurrencies continue to mature and gain widespread acceptance, the potential impact of government selling on market prices may become less severe.

Conclusion

In conclusion, the US government’s Bitcoin holdings are significant, and the selling of the cryptocurrency in bulk may cause a market impact. However, the market’s maturity could lead to sustained support for Bitcoin despite the expected selling pressure. Investors should keep an eye on the identified selling dates and prepare for possible disruptions.

FAQ

1. Can the US government’s selling of Bitcoin cause a market crash?
– Yes, if the assets are sold in bulk, it may lead to temporary market panic and crash.
2. Will the Bitcoin market recover after the selling pressure?
– Yes, as the cryptocurrency market matures and gains more widespread acceptance, it will potentially become less vulnerable to government selling pressure.
3. Is blockchain analysis critical in predicting Bitcoin market trends?
– Yes, blockchain analysis provides market trends analysis and helps understand the market’s behavior.

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