Key Points
- Bitcoin (BTC) recovers to over $66,000 after a brief dip following the sale of confiscated Silk Road BTC.
- Market inflows to U.S. spot Bitcoin exchange-traded funds (ETFs) surpass government sell-off.
Bitcoin (BTC) made a comeback to above $66,000 on April 3. This recovery came after a minor market dip linked to the sale of BTC confiscated from the defunct Silk Road marketplace.
The U.S. government had moved more than 30,000 BTC (equivalent to $2.1 billion) which it seized from Silk Road. A portion of this, around 2,000 BTC ($133 million), was subsequently sold.
Market Reaction to Silk Road BTC Sale
This sale seemed to unsettle the market, which was already in a delicate state. However, market participants were quick to restore calm. Michaël van de Poppe, founder and CEO of trading firm MNTrading, emphasized that both bullish and bearish narratives exist in every market.
He noted that bearish narratives tend to have a significant impact at peak bullish momentum. In this case, the narrative was centered around the transfer of the Silk Road Bitcoin. Van de Poppe expressed satisfaction at more of the BTC supply becoming available.
Bitcoin ETFs See Inflows
On the buy-side, data from sources including UK-based investment firm Farside, showed that the total inflows to the U.S. spot Bitcoin ETFs stood at just over $40 million for April 2. This, coupled with the $183 million seen on March 28, easily surpassed the government sell-off.
Popular trader Skew, in his latest market update, expressed hope for spot buyers to maintain momentum. He noted a good buyback reaction and the need for follow-through from buyers.
Another trader, Jelle, was even more optimistic, emphasizing that Bitcoin bulls had already overcome the most significant long-term resistance hurdles.
Van de Poppe also pointed out that market corrections are normal and occur in every market circumstance. He added that he wouldn’t mind a correction on Bitcoin as it would imply a healthier and organic market cycle. He concluded with the advice to buy during market dips.
