Bitcoin and crypto are suddenly set for a $1 billion earthquake in the US after the price increase of Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon and Solana
Bitcoinbitcoin, ethereumetherium, and other major cryptocurrencies rocketed higher during the first quarter of 2023, making bitcoin the best-performing asset by a significant margin and setting crypto at a “pivotal moment.”
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Bitcoin price has nearly doubled from late 2022 lows as the market bets that the Federal Reserve may be about to turn dovish (although the world’s largest asset manager has issued a dire warning). Ethereum price has risen along with bitcoin and other top ten cryptocurrencies BNBbinancecoin, XRPripple, cardanocardano, dogecoindogecoin polygon and solanasolana.
Now, after the US dumped $215 million worth of seized bitcoins on the market last month, bitcoin and crypto traders are bracing for just over $1 billion worth of bitcoin sales later this year.
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The nearly 10,000 bitcoins sold by the US government in March are part of a seizure of 50,000 bitcoins seized following the November arrest of James Zhong, who pleaded guilty to wire fraud after the government alleged he manipulated the transaction system to the darknet market Silk Road. in 2012 – claimed to be the last ever bitcoin seizure.
The remaining 41,000 bitcoins – worth $1.1 billion – are expected to be liquidated in four more batches during this calendar year, according to the court document.
In March, it was noticed that bitcoin in wallets associated with the seized Silk Road funds had been transferred to a Coinbase address, which received nearly 10,000 bitcoin.
The move spooked the market and raised eyebrows among analysts as the US has historically preferred to sell seized bitcoin and crypto via public auctions.
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The Bitcoin and crypto markets are also watching closely for signs of how the US Federal Reserve will act when it next meets to set interest rates in early May.
“With concerns that the US banking system is slowing, the market’s concern is again on the Fed’s May rate hike decision,” Yuya Hasegawa, crypto market analyst at Tokyo-based Bitbank, said in an email, pointing to economic data that has come in surprisingly hot the last few weeks.
“Bitcoin may retest $29,000, but it must close above that level to call it a ‘breakout’, otherwise it could be another ‘fake-out,'” Hasegawa added.
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