How Is the US Related to Bitcoin’s (BTC) Price Drop to $64.5K This Week? Santiment Observes
Bitcoin’s price action remained choppy this week. Its recovery to $69,000 remained brief after a massive plunge below $65,000. Nonetheless, the resurgence has sparked significant discussion within the community.
The drop is largely attributed to the US government’s move to sell its BTC stash from the Silk Road seizure, with plans for four more similar sell-offs in 2024 causing significant concern among traders. However, historical data suggest that markets typically move in the opposite direction of the crowd’s expectation.
Bitcoin Traders on Edge
According to Santiment, many attribute the recent drop to the revelation by US government authorities of their sale of nearly 10,000 BTC from the Silk Road seizure. This triggered apprehension among traders, exacerbated by the anticipation of four more sizable sell-offs throughout 2024.
Santiment’s analysis, however, highlighted a notable trend – spikes in crowd interest surrounding the Silk Road correspond with subsequent market upswings.
This phenomenon suggests a contrarian indicator, where market movements often diverge from prevailing sentiment. As such, the on-chain analytic firm suggests that if fear persists, further price increases in the crypto market could be expected.
