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Latest crypto updates and news regarding the price and performance of Bitcoin (BTC).
Earlier today, addresses connected to the US government transferred 49,000 Bitcoin seized from Silk Road, worth $1 billion.
Bitcoin price falling: simple volatility or something more?
The above transfer was accompanied by a drop in the price of BTC below $22,000 and a significant surge in a key parameter of holders. Hence, one wonders if this might mean that traders will have to prepare for potential volatility in the asset’s price.
The BTC transfer likely caused a significant spike in Glassnode‘s Coin Days Destroyed (CDD) parameter. This indicator measures the weighted movement of Bitcoin based on when they were last moved from an address.
CDD is calculated by multiplying the amount of Bitcoin transferred by the number of days since BTC was last added to an address. A spike in the CDD indicator usually precedes price volatility, with a slight advantage for bearish investors.
However, some long-term investors may also move Bitcoin to harness more upside gains in the futures market. However, CDD’s current two-month high does not necessarily suggest that a price movement from $1,000 to $1,500 is underway.
For example, exchange inflow data do not yet show significant spikes. On the contrary, about 5,000 BTC (worth about $100 million) have been moved off platforms in the past 24 hours.
Therefore, the transfer of $215 million to Coinbase has had little impact on price so far. However, with only about 20% of 49,000 BTC transferred to an exchange, the risk of increased selling pressure remains.
Currently, the BTC/USD pair is trading above support between $21,500 and $21,950, which is encouraging for buyers despite the slew of negative news this week. Further confirmation will come with consecutive daily closes above this support area.
What is happening to the Bitcoin from Silk Road?
On 8 March, more than 50,000 Bitcoin, valued at $1 billion, were moved from several wallets linked to US government law enforcement seizures and transferred to new addresses, with some BTC being moved to Coinbase.
According to data shared by on-chain analytics firm PeckShield, three transfers were made from US law enforcement wallets. These wallets contained nearly 51,000 BTC seized in November 2021 from the Silk Road marketplace.
The seized BTC were grouped into two wallet addresses. Of these three transfers, most appear to be internal. However, about 9,861 BTC were sent to Coinbase.
The other two included a transfer of 30,000 BTC and a transfer of 9,000 BTC. Silk Road was an online black market and the first modern darknet market. It was launched in 2011 by American founder Ross Ulbricht under the pseudonym “Dread Pirate Roberts.”
The marketplace was one of the first to accept Bitcoin payments, helping to spread the use of the cryptocurrency. US law enforcement confiscated numerous items from its founder, including BTC reserves, which were auctioned off from time to time.
In 2014, Tim Draper, a famous Bitcoin supporter, bought nearly 30,000 BTC in one such auction. In October 2015, another auction was held for 50,000 BTC, in which the US Marshals Service auctioned 21 blocks of 2,000 BTC and one block of 2,341 in an online auction.
Even though only a small fraction of the 50,000 BTC was sent to Coinbase, the movement of billions in BTC from wallets linked to US law enforcement agencies sparked wild reactions and even crazier theories from Twitter users.
One of them pointed out that if US agencies decided to sell the Bitcoin from Silk Road it could create significant selling pressure on the market. At the same time, others questioned this possibility.
Focus on the current price of Bitcoin (BTC) and predictions
Bitcoin is currently worth $21,662.72. BTC has moved 0.19% in the last 24 hours with a trading volume of $11,262,722,913. Bitcoin is currently ranked first among all cryptocurrencies with a market capitalization of $431,174,798.867.
Bitcoin, according to some experts, is one of the most surprising cryptocurrencies to rise this year (BTC). The BTC price forecast for 2023 predicts a significant increase in the second half of the year, perhaps reaching $32,499.85.
As with other cryptocurrencies, the rise will be gradual, but no major declines are expected.
In any case, an average $30,333.19 in price is quite ambitious, but is feasible in the near future given collaborations and anticipated advances. BTC should have a minimum value of $25,999.88.