Has DOJ’s Bitcoin [BTC] movement caused panic among holders?

• The transfer of some BTCs by the DOJ seemed to have caused the price of BTC to fall.
• Despite the mass movement by the DOJ, Netflow has not reflected irregular activities.

Bitcoin [BTC] has struggled to get past the barrier it has hit lately. Recent actions taken by a US government department have only served to add to this FUD in the most unexpected way. But the question is: To what extent has this had an effect?

Read Bitcoin [BTC] Price prediction 2023-24

DOJ’s BTC move shakes the crypto space

There was a report that the US Department of Justice (DOJ) moved over $1 billion in Bitcoin on Wednesday [BTC] to various wallet addresses, including one owned by Coinbase.

Authorities allegedly made three separate Bitcoin transactions. About $10,000 was transferred to Coinbase-managed wallets, while about $41,000 was transferred to government-managed accounts. The DOJ’s action exacerbated fears among investors that heavy selling pressure could crash the token’s price.

Sentiment reported that the Justice Department made a series of deals totaling $666 million in 2023, substantially double the previous record.

Bitcoin continues a downward trend

At the close of trading on March 8, the BTC price, viewed on a daily time frame, had fallen by a total of 2.21%. It was selling for around $21,600 at the time of writing, down about 0.40% in the same time frame.

With the latest decline, it has gone down for four days in a row.

Source: TradingView

The Relative Strength Index was the indicator that best captured the current BTC sentiment.

A bearish trend would be indicated by the RSI falling below the neutral line and even below 36. But it remains to be determined whether it will break the $20,000 support level and fall below. The coin’s resistance was the long moving average, and went above it.

Peak in Bitcoin volume recorded

A look at Santiment’s volume indicator revealed that there had been recent increases in BTC’s transaction volume. Up to the time of writing, Bitcoin had passed a total transaction volume of over 40,000. It was one of the busiest days for Bitcoin in recent months.

Source: Sentiment

How much is 1,10,100 BTC worth today?

Panic?

However, the Netflow metric represented typical activity despite any sentiment that other metrics might show.

According to the Netflow indicator on CryptoQuant, there were more inflows than outflows at the time of writing. What was remarkable, however, was that there were no apparent increases in inflow volume.

The current position of the indicator suggested that BTC owners were not panicking, indicating that a further price drop might not be expected.

Source: CryptoQuant