There is a greater concern about the nervousness of the Federal Reserve meeting in the price of Bitcoin. Buyers are very weak. The king of crypto is struggling to stay above $30,000. On-chain data about the recent drop is sending an important signal. If history repeats itself, we may see a rapid decline in cryptocurrencies within hours.
Did the US Sell Bitcoin?
We saw movement in the Bitcoin associated with Silk Road in the possession of the US on July 12. The previous sale had occurred in May and we experienced a rapid decline in cryptocurrencies. The second batch of sales was expected to take place at the end of July or the beginning of August. However, according to a post made by the user “anlcnc1,” the Silk Road BTC moved about 8 days ago.
“Confirmed. The US is preparing to sell Bitcoin. There is movement in the Bitcoin associated with Silk Road in the possession of the US. 9,000 BTC was moved from the wallet it was held in to two separate wallets. In a previous similar movement, the receiving wallet was tagged as Betvip (Coinbase) days later. So, it is highly likely that they will do the same again.”
Cryptocurrencies Can Drop Rapidly
anlcnc1 expects the announcement of the US sale within 8 days after the last transfer. Today is the 8th day, and it will not be surprising when the US Department of Justice makes the announcement in the coming hours. One of the reasons for the pressure on Bitcoin’s price may be investors who follow on-chain movements. Anlcnc1 wrote the following this evening:
“In the previous 9K BTC sale by the US, the Bitcoins moved on March 7 and they officially announced the sale on March 14. It was noticed by on-chain trackers 8 days before. Now, they have been noticed again. On July 12, 9K Bitcoins moved, and today is July 19, which is the 8th day. I expect the official announcement to come today or tomorrow. After the news effect, I believe that the pressure will be lifted and the price will move between 35,000 and 37,000. Let’s wait and see.”
At the time of writing, the BTC price continues to find buyers below $30,000.
