• The U.S. government has recently started to move its Bitcoin holdings, causing panic in the crypto community and leading to FUD among short-term holders.
• Long-term holders of BTC have stayed put, as the MVRV ratio is negative and the velocity of BTC addresses has been declining.
• Despite the FUD, Bitcoin remains a promising asset due to its performance against other real-world assets such as gold, silver, equities, and the U.S Dollar index.
U.S Government Moving Its Bitcoin Holdings
The U.S government has recently started to move its massive amount of BTC holdings which have been accumulated for law enforcement purposes throughout the years. According to Glassnode data, around 40k BTCs are on the move out of which 9,861 BTCs were seized from the Silk Road hacker and have been sent to a Coinbase cluster. This behavior by the U.S government has caused fear in many members of the crypto space who assume that this could lead to a decrease in Bitcoin’s value due to selling pressure from these large amounts sold off at once by the government.
Short-Term Holders Selling Off
The recent news about US government moving its bitcoin holdings has led short term holders of bitcoin to sell off their positions while long term holders are staying put and holding on their assets until they can be sold profitably. This behaviour is evident from analyzing metrics such as long/short ratios and MVRV ratios which indicate that short-term holders are exiting their positions while long-term holders could very well be HODLing their coins until it is profitable for them to sell them off again at a later date or time when market conditions may favor them more favorably than currently does now with all this FUD floating around regarding US governments movements with available bitcoin holdings it owns currently .
Positive Signs For Bitcoin
Despite all this hysteria surrounding US governments movements with regards to bitcoin holdings it owns potentially creating more selling pressure on current holders of bitcoin , there are still several positive signs that point towards potential growth in terms of price for bitcoin over upcoming months or even years ahead . One example would be bitcoins performance compared against other real world assets such as gold , silver , stocks & shares markets etcetera . So far in 2020 alone we can see how bitcoin has outperformed these asset classes in terms of price appreciation since start year despite any possible headwinds created by US governments actions regarding its own stash of digital currency units known globally better known as bitcoin (BTC).
FUD Impact On Sentiment Around Bitcoin
The news about US government moving its own crypto funds had also led many users feeling discouraged by what this could mean for bitcoins price if large number chunks were sold off quickly which then would place more downward pressures on current market prices overall taking into account most people tend operate within bearish mindsets when trading cryptos . As well we can also observe how sentiment surrounding btc itself had taken somewhat a hit during past few days but luckily not too severe since majority traders still remain relatively optimistic although some caution still prevails amongst those engaged actively trading btc against usd or other fiat currencies across globe .
Conclusion
In conclusion we can observe how US governments actions coupled with FUD circulating throughtout crypto trading circles have impacted both short & long term holder’s confidence levels when deciding whether hold or sell various digital asset class known worldwide today better known as cryptocurrencies like Bitcoin (BTC) etcetera . Despite all this however there still remain positive signs pointing towards potential future gains for btc despite current macroeconomic uncertainty along with widespread fears about inflationary pressures leading central banks across world implementing drastic measures keep prices stable globally . Lastly looking at past performances compared against traditional asset classes like gold , stocks & shares markets etcetera we can see how btc did relatively well during 2020 so far regardless any uncertainties caused by US Governments decisions concerning own stash digital currency units commonly referred as bitcoins (BTC)