U.S. Government Seized Bitcoin Moves, Causes FUD: What Now?

U.S. Government Seized Bitcoin Moves, Causes FUD: What Now?

• The US government has started to move its Bitcoin holdings, causing FUD in the market.
• Short-term holders have exited their positions while long-term holders stayed put.
• Despite the FUD, Bitcoin has outperformed gold, silver, U.S equities and the U.S Dollar index

U.S Government’s BTC Holdings Started To Move

The U.S government’s massive amount of BTC for law enforcement purposes has recently started to move according to new data provided by Glassnode. Approximately 40k BTC is on the move, out of which 9,861 BTCs were seized from the Silk Road hacker and have been sent to a Coinbase cluster. This behavior of the U.S government has caused speculation that it could sell these holdings negatively affecting Bitcoin’s value in the process and resulting in more FUD around it.

Short-Term Holders Exit Positions

At this time, despite the FUD around Bitcoin being slightly positive, short-term holders are likely exiting their positions according to declining long/short ratio observed by Santiment platform. Additionally, MVRV ratio for remaining long-term holders being negative implies they wouldn’t be able to sell their holdings for profit during this period yet continuing HODLing instead as suggested by declining velocity of BTC addresses seen on Santiment platform as well.

Bitcoin’s Performance Against Real World Assets

One reason why crypto community remains optimistic about future performance of Bitcoin is its performance against other real world assets such as gold, silver, U.S equities and U.S Dollar index which remain favorable despite all the hysteria with markets pricing in 50 bps for March and terminal Rate at 5.6% in October which was expected to be higher otherwise due to “higher for longer” sentiment around interest rates in United States currently prevailing among key players across different sectors including investors and economists alike .


Despite current uncertainty caused by US government’s moving its vast amount of BTC holdings leading to speculation of them selling off these assets negatively affecting value of Bitcoin and creating more FUD around it short term holders are likely exiting their positions while long term holder continue HODLing since they cannot sell off at a profit yet because MVRV ratio being negative also indicating lower velocity among active addresses as seen on Santiment platform however there remains few factors which still keeps crypto community optimistic about future prospects of bitcoin such as its performance against various real world assets like gold ,silver ,US equities etc .