Amidst the recent rally in the cryptocurrency market, optimism appears to be well-founded. However, there are few days this year when a sharp drop in the price of Bitcoin can be expected.
The prospect of the US government selling the bitcoins it seized on the days below could add pressure on the leading cryptocurrency.
Mark your calendars: Possible Bitcoin price drop
Over the years, the US government has repeatedly confiscated Bitcoin from criminal organizations. It has now been revealed that it plans to sell BTC this year, specifically on four separate occasions.
The first batch, consisting of nearly 10,000 BTC, was sold on March 14 this year, for a total value of $215 million. On that day, there was also a significant drop in the exchange rate.
In total, the US government plans to launch 41,500 BTC into the market this year.
Analyst and frequent writer for CryptoQuant available Exact dates for selling the remaining 4 parts:
- May 26th
- Aug 7
- Oct. 19
- December 30th
Mark these dates on your calendar, as the market can be particularly volatile these days.
In November last year, the US authorities seized more than 50,000 BTC from James Zhong. This scammer stole assets in 2012 from Silk Road, an illegal online marketplace.
The US government is a crypto whale
The 41,000 BTC seized by the US government does not represent the entirety of US cryptocurrency holdings.
In recent years, the government has repeatedly confiscated bitcoin from alleged criminals. In addition to Zhong’s 50,000 BTC, the authorities seized an additional 160,000 BTC.
As a result, the total known amount of BTC currently held by the US government is around 200,000 BTC. This figure is equivalent to nearly six billion dollars.
It is safe to say that the US government is a veritable bitcoin whale.
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