- The US announces the sale of approximately $117 million worth of Bitcoin.
- BTC is seeing increased currency inflows as the price tries to stabilize at $40,000.
Recent headlines have been dominated by Bitcoin [BTC] spot ETF flows, especially the GBTC flow, which has gained increasing attention amid fluctuations in the price of BTC. The latest action by the US government has raised even more concerns, prompting speculation about its potential impact on the flow and price of BTC.
US sell-off has seized Bitcoin
According to a online noticethe US Department of Justice has declared its intention to sell some of the Bitcoin obtained from the lawsuit against Ryan Farace and his father Joseph Farace.
The charges against them included money laundering conspiracy.
The Justice Department reported the successful recovery of more than 2,933 BTC from the Farace family. The property is currently valued at approximately $117 million, although it was valued at approximately $133.5 million when the forfeiture notice was released on January 10.
Ryan Farace was convicted in 2018 of manufacturing and selling Xanax pills on dark web platforms such as Silk Road.
While this is not the first time the US has seized and sold Bitcoin, the current state of BTC prices has increased interest in the recent announcement by the US agency.
The inflows dominate Bitcoin’s net flow
The recent announcement generated more attention, especially when examining the net flow of Bitcoin on exchanges.
According to CryptoQuant data, there has been a notable increase in inflows compared to outflows in recent days.
Essentially, more BTC has been sent to exchanges for selling purposes. This dynamic implies a potential impact on price, with supply exceeding demand.
Source: CryptoQuant
Although the daily inflows have not been remarkably high, the cumulative figures have been significant.
At the time of writing, there was a temporary pause in the trend, evidenced by a slight outflow. Notably, the US announcement coincided with an ongoing outflow of Grayscale Bitcoin.
BTC’s recovery attempt continues
An examination of the daily timeframe chart for Bitcoin showed recent recovery attempts in recent days. However, this recovery has not yet shown significant strength, with BTC fluctuating in and out of the $40,000 price range.
At the time of this report, the stock was trading around $40,000, reflecting an increase of less than 1%.
Moreover, the decline has pushed the price below the neutral line of the Relative Strength Index (RSI), and it is currently below 40.
Source: trading view
Read Bitcoin (BTC) price prediction 2024-25
Furthermore, the short moving average (yellow line), which initially acted as support, has now become a resistance level around $43,000.
The prevailing sentiment is that once the outflows stabilize, the price of Bitcoin is expected to become stable.