The US government\'s Bitcoin sale has triggered market speculation

Recently US authorities transferred 4,000 BTC seized from Silk Road on Coinbase Prime sparking fears of selling pressure.

The US government recently sold 4,000 BTC, sparking concerns about selling pressure in the crypto market. However, market experts believe this offloading is unlikely to impact the market significantly due to the large volumes of Bitcoin handled by Coinbase Prime, where the funds were sold.

According to CryptoQuant, Coinbase Prime handles 20,000 to 49,000 BTC daily during high spot ETF inflows and 6,000 to 15,000 BTC during low inflows. Compared to these volumes, the government’s sale of 4,000 BTC is relatively small.

“The US gov’t sold 4K Bitcoin today, but less likely to impact the market. Coinbase Prime handled 20-49K BTC in sell-side liquidity daily during high spot ETF inflows and 6-15K daily during low spot ETF inflows. Posting this because I’m tired of “gov’t selling” FUDs.”

Meanwhile, Bitcoin’s recent market activity and price levels show that the dominant crypto faced rejection around $62,000, a key resistance level, and experienced a slight sell-off. At press time, BTC is holding steady at around $61,000, a psychologically and historically significant level, with the potential for a retest of lower levels around $59,900.

Bitcoin Stuck at $61K – What Traders Need to Know

In other market news, some observers have noted unusual buying activity on Binance and significant selling on Coinbase. The timing of Coinbase’s sell-off is also reflected in the derivative data.

“We can see that the derivative metric shows the coinbase sell-off timing. The funding rate has turned positive, which means that the longs are getting funded, indicating more leveraged long positions.”

“So, it will be interesting to see whether Binance’s spot demand is sustainable or it will only last for a short time and potentially move the price towards the liquidation cluster. The game plan and key levels are clear.”

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