Last night, on-chain data showed the US government had sent a massive amount of Bitcoin (BTC) to Coinbase. In total, this concerns more than 30 thousand BTC with a value of approximately $2 billion. Although the transaction initially led to fears of a large-scale sale, the bitcoin price currently appears to be recovering slightly.

De Silk Road Bitcoins

The US government’s Bitcoin stockpile comes from the famous Silk Road confiscation in 2022. Then the US government seized 50 thousand BTC from the dark web internet platform. In March 2023, the government already sold approximately 10 thousand BTC.

After news of the transaction became known, the Bitcoin price fell below $65,000. Understandably, the worst was feared: a large-scale sale. But there was no further price drop, and the BTC price is now on the rise. At the time of writing, the price is over $66,500.

There will be no further Bitcoin correction for the time being

On X the action of the American government is significantly downplayed. For example, someone says that the action is “genius”. With the proceeds from the BTC sale, the US government could pay off two-thirds of the daily interest on the national debt. This is of course referring to the enormous national debt of the American government.

Dutch analyst Michael van de Poppe is also not concerned. According to him, this will lead to more available BTC on the market. A day before spoke van de Poppe still comments on the current Bitcoin correction.

“Corrections are normal. They happen. They happen in all market conditions, regardless of any news. In this case, a correction is an indication of a healthy and organic market cycle. Dips are worth buying in this market.”

The deeper correction to levels below $60,000 will therefore not occur for the time being. If the current bounce continues, things look good for the coming weeks. Currently, the Bitcoin price appears to be in a ‘retest’ of the former historical peak of 2021. At that time, the weekly candlestick closed at approximately $65,600. As long as the price remains above that level, the weekly chart is bullish.

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