US Government Transfers More Bitcoin, Is More BTC Selling Imminent?
On Friday, June 28, it was reported that the US Government made a significant move by transferring more Bitcoin (BTC). Recently the government transferred a massive reserve of 2000 BTC to exchanges which caused FUD to spread in the market. Therefore, the latest move has also fueled speculation that the US government will sell Bitcoin on exchanges soon.
US Government Shifts More Bitcoins
According to arkham Intelligence, an address associated with the US government shifted 11.84 BTC worth around $726,000 to a new address. It is also speculated that this seemingly small transaction was a pre-test before a larger transfer. The funds in this wallet were seized from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin, who were involved in a major crypto fraud scheme.
Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin, who were at the center of funds seized by the US government, were involved in a major fraud operation. They deceived investors by promising high returns through crypto mining operations and related ventures. The proceeds from the fraudulent activities were later confiscated by the authorities. This has led to the current situation where the US government holds seized Bitcoin assets.
This latest activity follows another large transaction on June 26. At the time, the US government allegedly moved 4,000 Bitcoins to Coinbase Prime. Moreover, this transfer coincided with a noticeable decline in Bitcoin price, which dropped to $61,208. The transfer of approximately $240 million worth of Bitcoin to Coinbase Prime has raised concerns within the crypto community.
In addition, it has also raised fears of an imminent sell-off that could send Bitcoin prices even lower. The timing of these transfers is noteworthy as it aligns with market tensions and volatility. The actions of the US government mirror those of the German government, which is actively selling Bitcoin assets.
On the same day, German authorities continued the selling trend by transferring another 595 BTC to major cryptocurrency exchanges. Moreover, the sale of more than 2,000 BTC from an address associated with the German government in the last few days further increased the uneasiness in the market.
Also Read: Robert Kiyosaki Labels Bitcoin ETF ‘Fake’, Here’s Why
FUD Around Government BTC Sales
On June 26, PeckShieldAlert reported that a “German Government” address recently moved 750 BTC worth around $46 million. Of that, 595 BTC worth around $36.5 million was distributed among major exchanges, with bitstamp and Kraken each receiving 125 BTC. flow Traders, a global trading firm, received the largest portion of the 345 BTC.
kraken, in particular, seems to be a preferred exchange for these transfers, as it also received 200 BTC in the previous 400 BTC sale. However, despite these significant sell-offs, Germany’s Bitcoin holdings remained strong. These assets are now worth $2.76 billion, including $1.1 billion in unrealized profits.
While some analysts have cited government sales as a contributing factor to recent market volatility, the overall impact remains unclear due to other influential market forces. Amid these concerns, CryptoQuant CEO Ki Young Ju sought to alleviate fears regarding a U.S. government Bitcoin sale.
Additionally, he emphasizes that the recent 4,000 BTC selloff is unlikely to significantly impact the market. Ju noted that Coinbase Prime has the capacity to handle significant liquidity, managing 20,000 to 49,000 BTC during periods of high spot ETF inflows. Additionally, even during low Bitcoin ETF inflows, the exchange provides liquidity between 6,000 and 15,000 BTC.
Ju also expressed disappointment over repeated fears of a “government sell-off” and assured that the sell-off should not cause major concern among market participants. In addition to the government’s actions, other market players such as Bitcoin miners and dormant whales have continued to offload their assets. Today, a dormant Bitcoin whale transferred $61.5 million worth of BTC to Binance. This has fueled speculation about a potential sell-off and added to the market’s current concerns.
Also Read: Bitcoin Hacker Moves $30 Million Worth of BTC, Is Another Market Gap Coming?
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