Bitcoin’s Shocking $30K Plunge: Analyst Points Finger at US, Will the Dive Deepen?

  • 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.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Bitcoin Price Surges 2.91% to $84,142: Key Resistance Levels and Investor Strategies Explained

Bitcoin experienced a significant uptick of 2.91% in the...

Massive Short Position: Hyperliquid 50x Whale Bets $330 Million Against Bitcoin

In a notable development within the cryptocurrency landscape, COINOTAG...

Bitcoin’s 2024 Trajectory: Navigating Rising Wedge Patterns and Market Uncertainty

On March 15th, Markus Thielen, Director of 10x Research,...

XRP Dominates Korean Market with 26.49% Share Amid Upbit’s $19.67 Billion Trading Volume Drop

COINOTAG News reports that, as of March 15th, recent...

Marc Lasry Discusses Market Uncertainty and Its Impact on Investments Amidst Trump’s Tariff Policies

In a recent statement made during the Credit Opportunity...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img