Bitcoin’s price has taken a bit of a beating recently. The price slid below $92,000, marking its lowest level in over a month, as the market absorbed news of a massive upcoming Bitcoin sell-off. The US government has received approval to liquidate 69,370 BTC, seized from the Silk Road marketplace, worth around $6.5 billion.
This news added fuel to an already fragile market, which was still reeling from the effects of hotter-than-expected jobs data earlier in the week. Investor sentiment was already on edge, and the confirmation of the sell-off further amplified the bearish outlook. As the market braced for the government's move, Bitcoin bulls rushed to prevent further declines, deploying $721 million in leverage to keep the price from falling below the $90,000 mark.
Derivatives market data shows that many investors are maintaining long positions around the $90,000 level, hoping to protect their positions from additional downside. The sharp correction comes at a time when Bitcoin had been showing signs of bullish momentum, but these recent developments have disrupted that progress.
With Bitcoin currently trading at just under $95,000, the big question remains whether the bulls can absorb the pressure or if a further decline is imminent. The sell-off by the US government is expected to be a pivotal moment for Bitcoin, and how it responds could set the tone for the crypto market's direction in the near future. Investors are closely watching the unfolding situation, with many hoping that the bulls will regain control before a potential breakdown.
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Disclaimer
Not financial or tax advice. No content produced by Pluto is financial, accounting, legal or tax advice. Our content is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This article is not tax advice. Talk to your accountant. Do your own research. The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
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