The non-farm payrolls and inflation data for the past two weeks have been released. Although the current data have not yet reached a level that makes people particularly worried about inflation, they have indeed cooled the market's expectations for economic recession and short-term interest rate cuts. In short, the market may have expected a rate cut before, but now it seems that this possibility has decreased.


Bitcoin prices fell before the weekend, once falling to $58,949. At the same time, the Chinese government sold 15,700 Ethereum coins from its digital wallet and transferred 7,000 of them to exchanges, which may have caused some liquidation panic in the market. In addition, Peter Schiff, a well-known Wall Street investor, mentioned that the US government seems to be preparing to sell 69,370 Bitcoins, which are worth about $4.3 billion at current market prices.


The Chinese and American governments jointly attack the "roadblocks" and the government dumping goods has caused panic again


CoinMarketCap recently reported a news that cryptocurrency researcher Free Samourai mentioned on Thursday, October 10, that the Chinese government moved 15,700 Ether related to the PlusToken Ponzi scheme from their digital wallets and transferred 7,000 of them to cryptocurrency exchanges. This series of actions has raised concerns that liquidations may occur. The researcher also specifically mentioned several exchanges, including Binance, Bitget, and OKX. As soon as this news came out, the cryptocurrency market showed some signs of slowing down. The PlusToken project collapsed in mid-2019, when the Chinese government took severe measures to arrest the masterminds behind it. The mastermind was tried in court and found guilty of defrauding investors. By December 2020, the Chinese court sentenced the perpetrators to 11 years in prison.


Let's take a look at the Bitcoin holdings. According to data from Bitcoin Treasuries, China currently holds 190,000 Bitcoins, second only to the United States, which holds 203,239 Bitcoins, the most among all governments in the world. The United Kingdom ranks third, holding 61,000 Bitcoins.


Separately, Peter Schiff expressed his opinion on Wednesday via Twitter, saying that the U.S. government appears to be preparing to sell 69,370 bitcoins, which are worth about $4.3 billion at current market prices. He also joked that the government occasionally does something smart, suggesting that MicroStrategy CEO Michael Saylor should let the company borrow another $4.3 billion to buy these bitcoins. He also asked who agreed with his point of view.


Finally, CoinTelegraph reported that the U.S. Supreme Court refused to hear a case regarding the ownership of 69,370 Bitcoins seized by the U.S. government from the dark web market Silk Road, which is worth approximately $4.38 billion. The review request was filed by Battle Born Investments, which claimed to have purchased the rights to the seized Bitcoins. The Supreme Court's refusal could pave the way for the U.S. government to sell these Bitcoins.


Why has Bitcoin been unable to break through resistance?


(CoinDesk) reported on Augustine Fan, an executive of SOFA, on the recent performance of Bitcoin. He believes that there are several factors that have affected Bitcoin's failure to break through new highs and refresh historical records again.


First, the uncertainty of the US election is a factor. Former US President Trump was considered to be friendly to cryptocurrencies, but now it seems that the Democratic Party and their presidential candidate Kamala Harris may not bring much benefit to cryptocurrencies.


Secondly, the market has been under great selling pressure since Mt. Gox, the bankrupt cryptocurrency exchange, began paying back its creditors this year, and Mt. Gox recently announced that it would delay its repayment deadline, which means the market may be under selling pressure for even longer.


Finally, with the Federal Reserve cutting interest rates, the yield of U.S. Treasury bonds began to rise, which led to a lack of funds flowing into the cryptocurrency field. These factors combined may be the reason why Bitcoin has not been able to break through upwards.


$69,000 is a key resistance level


Omkar Godbole, a market analyst at CoinDesk, gave some of his predictions for Bitcoin. He said that if Bitcoin wants to show bullish signs, it needs to break through the key resistance level of $69,000 first.


Once Bitcoin breaks through this price point, it could rejoin the overall uptrend that began in October 2023 and could head toward the $100,000 target set by traders. It’s also worth noting that October is usually a good month for Bitcoin based on its past performance, but such gains usually don’t become apparent until late October.