• CryptoQuant has identified four important dates in 2023 with potential extra selling pressure from the US government’s Bitcoin holdings.
• The US government’s upcoming actions could trigger potential sell pressure in the near future, even as investors currently do not exhibit any bearish behavior.
• Unloading large holdings of Bitcoin could induce severe volatiity in the market, potentially leading to short sellers profiting if prices drop.
US Government Could Trigger Potential Sell-Off
The US government has been very critical of the crypto space, especially over the past few months. Its upcoming actions could trigger potential sell-off in the near future, even as investors currently do not exhibit any bearish behavior.
Four Crucial Dates To Keep An Eye On
Prominent analytic firm, CryptoQuant, has identified four important dates – 26 May 2023, 7 August 2023, 19 October 2023 and 30 December 2023 – as there may be extra selling pressure from the United States government’s Bitcoin holdings on those days. This is because there will be a 73-day interval between each batch sale of 41,491 bitcoins throughout the year according to its analysis.
Impact Of Sell-Off On BTC Prices
Bitcoin broke several crucial levels this year as the market sentiment improved compared with 2022’s apocalyptic and scandal-filled downturn. However an unloading of large amount of Bitcoin would have a negative short term impact on BTC prices allowing short sellers to profit if prices drop due to increased volatility.
Current Market Sentiment
The rebound in cryptocurrency markets this year has been promising so far however such a sale could still have an effect on prices and investor sentiment towards cryptocurrencies going forward.
The upcoming actions by US government regarding their bitcoin holdings are something that investors should keep an eye on and take into account when making trading decisions over these four key dates next year.