• The US government could trigger potential sell pressure in the near future.
• CryptoQuant has identified four important dates throughout the year when extra selling pressure from the US government’s Bitcoin holdings is expected.
• A sale of BTC by the US government could have a negative short-term impact, allowing short sellers to profit.
Government Sell Pressure
The US government has been very critical of the crypto space, especially over the past few months. Its upcoming actions could trigger potential sell pressure in the near future, even as investors currently do not exhibit any bearish behavior.
Important Dates To Watch
Prominent analytic firm, CryptoQuant, has identified four important dates – 26 May 2023, 7 August 2023, 19 October 2023, and 30 December 2023 – as there may be extra selling pressure from the United States government’s Bitcoin holdings on those days. According to its analysis nearly 41,491 bitcoins will be sold in four batches throughout this year with 73 days intervals between each batch sale.
Impact On Prices
Bitcoin broke several crucial levels this year as market sentiment improved compared with 2022’s apocalyptic and scandal-filled downturn. The rebound has been promising so far, but such a sale could have a negative short-term impact on BTC prices allowing short sellers to profit.
US Government Holdings
The US government holds a large amount of Bitcoin which it acquired during various criminal investigations and proceeds of crime confiscations throughout 2021 and early 2022 according to various reports by news outlets like The Wall Street Journal and Bloomberg. This timeline indicates that a significant portion of these assets are already being liquidated by authorities for other purposes though no official confirmation has been made yet by any governmental entity or agency responsible for handling confiscated assets.
The recent movement in BTC prices is an indication that investors are still bullishly positioned despite warnings about possible selloff events coming up later this year. However it remains unclear whether or not these events will have any lasting effects on overall market sentiment until more details are released about what exactly these sales entail and who is buying them from whom at what price points etcetera