maartunn

Did the US government provide fuel for the price drop? 🤔

The price of Bitcoin has dropped significantly. But what role has the US government played in this decline? If you open Twitter, you'll see various reasons for the price drop. The argument that appears most often is the issues at various banks, including Silvergate & Silicon Valley Bank. I want to add a new reason. 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 (links and tweets in the description). At least 9,000 bitcoins were sent to Coinbase. Shortly after the transaction was executed, Coinbase Premium started to become strongly negative. This suggests that there was strong selling pressure from Coinbase. This is remarkable because (as far as I know) we have not seen a transaction of seized bitcoin being sent to Coinbase before. It's difficult to say what impact this transaction had on the price drop because we can't see what's happening on the exchange. But everything suggests that it caused extra selling pressure. All links and tweets about this subject are in the comments section.