Bitcoin Price Falls Below $93K as US Government Clears Sale of 69,370 BTC
Bitcoin (BTC) price fell over 3% in the last 24 hours, reaching a low of approximately $92,806. This decline led to liquidations exceeding $483 million, primarily affecting long traders. The fear of further market correction has increased as Bitcoin nears a critical support level above $92k. The fear and greed index for Bitcoin dropped from 78% to 69% in two days.
Key Factors Behind the Price Drop
- The US government is set to sell 69,370 BTC seized from Silk Road, valued at around $6.5 billion, after a legal decision.
- This sale will be managed by the US Marshals service, with funds deposited into Coinbase Prime.
- US spot BTC ETF issuers faced a net cash outflow of $582 million, with Fidelity’s FBTC and BlackRock’s IBIT seeing significant withdrawals.
Market Outlook
The current Bitcoin correction was anticipated following strong growth over the past two months. Historical patterns show similar corrections occurred before rallies in January 2017 and 2021. A shift towards a pro-crypto US administration may influence Bitcoin's price trajectory. Increased corporate adoption and institutional accumulation are expected to reduce Bitcoin supply on centralized exchanges.