TL;DR

• The US government moved $2B worth of seized Silk Road, causing a sell off that wiped billions from Bitcoin’s market cap (to prices we haven’t seen since…yesterday).

Full Story

So that BTC flush that took us from $70k to sub $68k?

It didn’t just end with Bitcoin — it hit the entire market, and quickly (within a four hour stretch).

…but why?

Glad you asked.

Two days after former president Trump announced that, if elected, he’d stop the US from selling any of its seized Bitcoin — the US government moved $2B worth of seized Silk Road Bitcoin.

It might not have been moved with the intention to sell (we still don’t know at this point), but when the market sees even a slight hint that that sort of of sell pressure might be about to hit — investors take profits, just to be safe.

And when everyone is lead by the same idea, to the same action (in this case, selling), it can have a cascading effect.

As is the rule in crypto — “when in doubt, zoom out” and you’ll be able to see through the headlines…

For example:

“Bitcoin dumps billions in market cap!”

Turns into:

“Bitcoin dumps billions in market cap, to prices we haven’t seen since yesterday.”

This too shall pass 🧘