Uncle Sam lists Bitcoin for sale: Should BTC holders be concerned

April 16, 2023

By Himalay Patel

Read Bitcoin’s [BTC] Price Prediction 2023-2024

– The U.S government made plans to sell its BTC holdings over the next year.

– Markets can be impacted temporarily due to these sell-offs, but currently, traders remain optimistic.

The U.S. government has been very critical of the crypto space over the past few months. The regulatory issues surrounding the space, coupled with scams that have impacted the general population, have made the U.S. government more cynical about the cryptocurrency market and Bitcoin [BTC].

U.S. to sell off its BTC holdings

The cynicism is one reason why the U.S. has decided to sell off its BTC holdings. The government acquired these Bitcoins through three cases. They include the Mt.Gox scandal, the Bitfinex hack and the seizure of Bitcoin from James Zhong.

The U.S. government now has just 41,491 BTC as some were sold earlier this year on 14 March. The remaining coins will go through a sale in four batches later in the year.

According to Maartunn, a market viewer with CryptoQuant, if we divide the number of days in a year by the number of batches, we get 73 days. Interestingly, the first batch was sold on day 73 of 2023.

If a selling pattern arise from the U.S. government, we may see sales of the remaining batches every 73 days. And this may have a negative short-term impact on BTC prices, allowing short sellers to potentially profit.

However, traders did not exhibit any bearish behavior at press time. Glassnode’s data further revealed that even with the increasing prices, the put-to-call ratio for Bitcoin has dropped. This suggests that there are more call options than put options on exchanges at press time.

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