Massive Silk Road Bitcoin Influx To Coinbase Exchange, But Will It Affect the BTC Price?

On Wednesday, the crypto market experienced a wave of volatility as news broke that the US government had transferred a significant amount of Bitcoin seized from the infamous Silk Road marketplace to the Coinbase exchange.

The US government recently transferred 10,000 Bitcoin ($590 million) to Coinbase, sparking a 3.3% dip in the BTC price.

Bitcoin price now hovers below the 200-day EMA and 200-day MA, presenting a pivotal resistance level.

Crucial support thresholds lie at $56,530 and $52,990 to prevent a potential correction.

The US government has reportedly transferred a substantial amount of Bitcoin, specifically 10,000 BTC, to the cryptocurrency exchange Coinbase. This recent development in the crypto market has brought forth several implications.

According to on-chain data tracker Arkham, the US government recently moved 10,000 Bitcoin, currently valued at approximately $590 million, from a known government wallet to a Coinbase Prime deposit address.

This recent activity, as reported by Bitcoinist, stems from the US Department of Justice’s asset forfeiture division, the US Marshal Service, selecting Coinbase Prime to provide custody and advanced trading services for its “Class 1” digital assets. This partnership aims to integrate these digital assets into the government's forfeiture programs.

However, it's crucial to note that Coinbase's role as the custodian of these seized digital assets might not always lead to immediate selling, as observed in previous instances.

After rising sharply from lows of $59,000 at the beginning of August, BTC price has been experiencing a bullish recovery. However, it has yet to decisively breach the 200-day EMA at $59,468 and the 200-day MA at $62,274, which are critical for establishing favorable medium-to-long term price momentum.

Daan Crypto Trades recently highlighted two key resistance levels in a recent analysis of the current Bitcoin price action, considering a potential continuation of BTC's recovery over the past seven days.

The analyst identifies two critical resistance levels that Bitcoin price must hold if a potential correction is anticipated.

In the BTC/USDT daily chart, the $56,530 level serves as a critical support zone, preventing a downturn that could mirror the substantial 20% correction observed at the beginning of August.

Furthermore, if Bitcoin fails to hold at this level, the next support threshold to watch is $52,990, especially if selling pressure intensifies, driving BTC price lower.

The above is the detailed content of Massive Silk Road Bitcoin Influx To Coinbase Exchange, But Will It Affect the BTC Price?. For more information, please follow other related articles on the PHP Chinese website!