Why the Dip? (US Gov Selling Silk Road BTC?)

TL;DR

Full Story

In order that BTC flush that took us from $70k to sub $68k?

It didn’t simply finish with Bitcoin — it hit all the market, and rapidly (inside a 4 hour stretch).

…however why?

Glad you requested.

Two days after former president Trump introduced that, if elected, he’d cease the US from promoting any of its seized Bitcoin — the US authorities moved $2B value of seized Silk Highway Bitcoin.

It won’t have been moved with the intention to promote (we nonetheless don’t know at this level), however when the market sees even a slight trace that that kind of of promote strain is perhaps about to hit — buyers take earnings, simply to be secure.

And when everyone seems to be lead by the identical concept, to the identical motion (on this case, promoting), it might have a cascading impact.

As is the rule in crypto — “when doubtful, zoom out” and also you’ll be capable of see via the headlines…

For instance:

“Bitcoin dumps billions in market cap!”

Turns into:

“Bitcoin dumps billions in market cap, to costs we haven’t seen since yesterday.”

This too shall go