According to Spot On Chain monitoring, just before the news that the US government approved the sale of $6.5 billion in Bitcoin came out, a whale with a $234 million portfolio deposited 300 Wrapped Bitcoins (WBTC) worth about $28.5 million to the Binance exchange. It is said that the address successfully made a profit of $9.98 million.#BitcoinLatest News#
The whale has been trading WBTC since March 2023, often buying low and selling high. Currently, the whale holds 195 WBTC on the Aave platform, worth approximately $18.4 million, with an estimated total WBTC profit of $33.7 million, an increase of 33.2%.
News aggregator DB News posted that the U.S. government has been approved to liquidate 69,000 bitcoins (worth $6.5 billion) seized from Silk Road, and an official confirmed the news to DB News.
After the news came out, Bitcoin shorts launched an attack and the price fell to a low of $93,299.
With the sudden onset of major negative news, legendary trader and BitMEX founder Arthur Hayes also said that Diamond Hand is ready to buy at the bottom.
Ki Young Ju, CEO of CryptoQuant, posted: “In 2024, based on realized market capitalization, $379 billion will enter the market, about $1 billion a day. The $6.5 billion in Bitcoin sold by the U.S. government could be absorbed within a week.”
He urged investors: "Don't panic."
Blocktrends analysts said that as the price of Bitcoin fell sharply after hitting an all-time high of $100,000 at the end of 2024, a large number of Bitcoin holders began to enter the market to stockpile goods.
According to Cauê Oliveira, head of research at Blocktrends, in a CryptoQuant post on Wednesday, CoinTelegraph reported that assets worth about $3.2 billion have been accumulated by institutional investors, providing buying pressure for Bitcoin's current recovery.
He said that before this, wallets holding 1,000 to 10,000 bitcoins sold 79,000 bitcoins in the week after December 21, a few days after the Federal Reserve’s interest rate cut, the price of Bitcoin hit a peak of more than $108,000 on December 17, eventually resulting in a 15% correction.
He added that “large players took advantage of this consolidation” and began breaking up large trades into multiple small orders to accumulate Bitcoin below $95,000.
Bitcoin, trading around $94,900, was down about 2.3% on the day along with the broader cryptocurrency market as U.S. jobs and economic data dashed hopes for further interest rate cuts in late January.
In a Jan. 6 market report, Bitfinex analysts said that sell-side liquidity in the Bitcoin market is “shrinking rapidly” and the worst of the downward pressure on its price may be over.
However, analysts predict that Bitcoin could see a record rally this year, driven by Trump’s expected pro-crypto policies and the country’s adoption of Bitcoin.
Matt Hogan, a research analyst at Fidelity Digital Assets, wrote in a paper on Tuesday that the firm expects "more nation states, central banks, sovereign wealth funds, and government treasuries to seek to establish strategic positions in Bitcoin."
Blockware analysts said late last month that in a worst-case scenario, U.S. Bitcoin reserves could push its price above $150,000, while in a best-case scenario, the cryptocurrency would rise to over $400,000.
