Throughout this week, Bitcoin's price journey has been tumultuous. Despite briefly rebounding to $69,000, it experienced a sharp decline below $65,000, igniting significant discourse within the crypto community.

The plummet in price is widely linked to the US government's decision to liquidate its BTC reserves acquired from the Silk Road seizure. With plans for four additional sell-offs in 2024, traders are expressing heightened concerns. However, historical data suggests an intriguing trend – markets often move counter to popular expectations.

A Heightened State Among Bitcoin Traders

According to insights from Santiment, many attribute the recent price drop to the disclosure by US government authorities regarding the sale of nearly 10,000 BTC obtained from the Silk Road seizure. This revelation has heightened apprehension among traders, compounded by the anticipation of four more substantial sell-offs throughout 2024.

Santiment's analysis sheds light on an intriguing correlation – spikes in public interest surrounding the Silk Road coincide with subsequent market upswings. This observation challenges conventional wisdom, suggesting a divergence between market movements and prevailing sentiment. Consequently, the on-chain analytic firm speculates that prolonged fear could potentially drive further price hikes within the crypto market.