- Analyst Konstantin Anissimov believes that the US government’s sales from Silk Road could create price volatility in Bitcoin (BTC).
- Anissimov points to the low trading volumes in the market as a reason for potential short-term selling pressure caused by the $300 million worth of Bitcoin seized from the darknet platform.
- The analyst suggests that the current daily trading volume of Bitcoin, which is less than $2 billion, with a significant portion being wash trading, could exacerbate any potential sell-off.
Silk Road Sales Could Impact Bitcoin Price, Says Analyst
An experienced analyst who believes that a sell-off is imminent, Anissimov suggests that the market could soon price in the negative impact of this news:
“I believe that this price drop is mostly due to the signals of a drop in futures prices and the news that the US government is preparing to sell $300 million worth of Bitcoin. I think the market expects this to happen very soon. The total daily trading volume of Bitcoin is currently less than $2 billion. My assumption is that a portion of this is wash trading. Therefore, a $300 million Bitcoin sale should result in a negative price movement, and it will.”
On the other hand, Anissimov believes that the downturn will be short-lived and that a rebound will not be delayed.
Recently, Acheson Acheson, the author of Crypto is Macro Now, pointed out the inverse correlation between the US dollar index (DXY) and BTC, suggesting that a decline in DXY would trigger a rise in Bitcoin.
