Bitcoin Rebounds Over $66,000 Despite Silk Road Sale; Optimistic Outlook Maintained by Experts
Summary:
On April 3, Bitcoin (BTC) rebounded above $66,000 despite the Silk Road BTC sales news. The US government had transferred and sold a portion of over 30,000 BTC, previously confiscated from the defunct Silk Road marketplace. While this news initially rattled the market, trading professionals maintained a positive outlook. Inflows to US Bitcoin ETFs, at over $40 million for April 2, coupled with a previous positive net flow day, outweighed the government's BTC sell-off. Industry experts believe this situation indicates a healthy market cycle and are encouraging buyers to maintain momentum.
Bitcoin (BTC) climbed back over the $66,000 mark on April 3, as followers of the market shrugged off the sales of BTC from Silk Road. BTC to USD, viewed on a one hour chart, showed a small recovery after the digital currency fell near to $64,500 following the daily close. This took place amid announcements that the US government had transferred over 30,000 BTC (equivalent to $2.1 billion), taken from Silk Road, a now defunct marketplace, to the blockchain and then sold off 2,000 BTC (worth $133 million).
This seemed to unsettle an already sensitive market, but market professionals were swift to request tranquility. “We have both optimistic and pessimistic narratives in every market,” claimed Michaël van de Poppe, founder and CEO of MNTrading, as he posted a response on X (previously known as Twitter). “We witness a sizeable effect of every negative narrative at time of maximum positive momentum. The current narrative being the transfer of Silk Road Bitcoin.”
Van de Poppe further noted that he was “pleased” that more BTC supply was now accessible. Some pointed out that the sold amount was trivial.
As for the purchasing side, the most recent data from sources including UK based investment company Farside, showed total inflows into the US's spot Bitcoin exchange-traded funds (ETFs) slightly above $40 million for April 2. Adding to this, the $183 million seen on March 28, the previous Wall Street trading day that experienced a positive net flow, easily overshadows the government sale.
Well-known trader Skew, in his most recent market review, expresses his desire for the spot buyer to keep the momentum going. He expressed to his X followers about the BTC/USD on 4-hour timescales, “Nice recovery of the lows & good reaction to buying. Now we need more from buyers.”
Even fellow trader Jelle was more positive, emphasizing that Bitcoin proponents had already surpassed the most significant resistance hurdles in the long term. “Corrections are normal; they do happen. You'll see them happening in every market scenario, regardless of any narrative,” Van de Poppe had said a day earlier. “In this case, I welcome a correction on Bitcoin as it suggests a healthier, more natural market cycle. Dips are for buying in these markets.”
This article is not an investment advice or recommendation. All investment and trading choices come with risk, and readers must do independent research before making a decision.
Published At
4/3/2024 10:40:42 AM
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