The US government has moved approximately 60 Bitcoin, worth nearly $4 million, fueling concerns about another potential selloff ahead. Notably, this follows recent substantial offloads by the U.S. and German governments, which have weighed heavily on the crypto’s price, threatening to wipe out its recent gains. Now, although the transfer amount is comparatively low, it still sparks discussions over more selloffs in the coming days.
US Govt Dumps Bitcoin Again
According to Arkham Intelligence, the US government transferred 58.472 BTC, valued at $3.96 million, to a wallet address identified as “34tXj..HUXfd”. This wallet then moved the Bitcoin to Coinbase Prime.
However, despite this recent transaction, the US govt still holds a significant amount of BTC, totaling 213.239K BTC, worth approximately $14.43 billion. These continuous selloffs by governments are raising concerns among investors.
Meanwhile, the ongoing liquidation could put further pressure on the crypto’s price, potentially reversing the bullish trend seen in recent months. As the market speculates on future moves, the possibility of additional selloffs remains a critical factor that could influence the crypto’s trajectory.
In other words, the recent activity by the government adds to the unease. If the selloff continues, the negative impact on BTC’s price could be significant. The sentiment in the cryptocurrency market, which has been largely positive, might shift as these developments unfold.
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Bullish Sentiment Prevails
Despite the recent selloff by the US govt, there are catalysts in the market that have bolstered sentiment. One such event is Donald Trump’s anticipated speech at the upcoming Bitcoin Conference 2024.
His views on cryptocurrency could sway market opinions and potentially offset some of the negative impacts of the selloffs. Besides, it is expected that Donald Trump might announce Bitcoin as a strategic reserve for the U.S., which has further fueled market sentiment.
In addition, recent robust inflows into U.S. Spot Bitcoin ETFs have shown strong investor interest. These inflows are a sign of confidence in the crypto’s long-term value, even as short-term volatility persists. The combination of Trump’s speech and ETF inflows might provide a counterbalance to the negative pressure from government selloffs.
Meanwhile, the market remains optimistic about the flagship crypto’s future. However, the ongoing government selloffs present a significant risk. Investors will need to stay vigilant, keeping an eye on both the selloff activities and the positive catalysts that could influence BTC’s price in the coming months.
However, despite the recent dump by the US govt, Bitcoin price soared over 1% and crossed the $68,200 mark. Its trading volume also rose 84% to $43.79 billion. Furthermore, BTC Futures Open Interest rose 2% over the last 24 hours, indicating growing market confidence towards the asset.
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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.