The U.S. Department of Justice is preparing to sell 69,000 Bitcoin (BTC), valued at over $6 billion. This sale is expected to have a significant impact on the cryptocurrency market. However, previous sales of similar magnitude have had varying effects on the price of Bitcoin. Experts are currently analyzing market data to understand the potential consequences of this sale. Glassnode is examining different datasets to assess the implications of the U.S. government’s massive sale on the market.
In July 2024, the German government sold 56,000 BTC, but this did not cause a market collapse. Instead, the price of Bitcoin, the largest cryptocurrency, increased from $53,000 to $68,000. This suggests that large-scale sales do not always have a negative impact on the market.
However, history has shown that not all sales result in positive outcomes. Glassnode has analyzed exchange net flows (30-day moving average) and the position of the market cycle to evaluate the impact of the U.S. government’s Bitcoin sale on the cryptocurrency market. Exchange net flows are considered important indicators for measuring selling pressure.
The impact of the upcoming Bitcoin sale by the U.S. government will depend on the phase of the cryptocurrency market during the sale, according to Glassnode analysts. Bitcoin’s NUPL indicator is currently between 0.5 and 0.75, indicating a state of Euphoria/Greed in the market. This suggests that the effects of the U.S. government’s sale may be temporary and short-lived.
