Bitcoin News: The US government recently moved about 3940 Bitcoin, which worths approximately $241 million to Coinbase, this action tracked by Arkham Intelligence, shows how the government continues to handle its substantial Bitcoin holdings, currently valued at around $13.3 billion.
Govt-Controlled Bitcoin Wallets
Bitcoin News: The Bitcoin that US government just moved around, comes from a big seizure they made way back in 2013. Back then, there was this online marketplace called Silk Road where people could buy illegal stuff anonymously. The government shut it down and took all their Bitcoin. That’s the Bitcoin they’ve been holding onto ever since.
Bitcoin News: Recent Transfers
In April, the US government moved around 30,175 Bitcoin worth about $2 billion to a company called Coinbase. They did this in 3 chunks: first a tiny test amount of $65, then a bigger chunk of $130 million, and finally the rest went to a different government wallet, and this last bit suggests they might be planning to sell it in the future..
Market Implications
Bitcoin News: After the recent transfer, Bitcoin’s price briefly dipped to $60,800 before recovering to around $61,000, as reported by CoinGecko, and these significant movements have sparked worries about more selling pressure in the market, especially given Bitcoin’s recent bearish trend.
Adding to the pressure is the recent announcement by the Mt Gox trustee. The defunct exchange is set to begin a $9 billion repayment plan next month, With victims receiving payouts in Bitcoin and Bitcoin Cash. This influx of supply can impact the market further.
International Actions
Bitcoin News: The US is not alone in these large scale Bitcoin movements, the German government is also active in moving Bitcoin. They transferred 400 BTC to Coinbase and Kraken, and an additional 500 BTC to an untagged address, and these moves have sparked significant speculation within the crypto community, regarding the strategic management and potential sale of government held Bitcoin assets.
Long-Term Holders’ Impact
A study by Glassnode looked at people who hold Bitcoin for a long time (LTHs). It turns out these folks are the ones cashing out the most when the price goes up quickly, even though they aren’t trading very often, and this is something they tend to do all the time. The study also found that the current price of Bitcoin is lower than what most recent buyers paid for it. If this keeps happening for a while, it could spook investors and make the price drop even more.
Bitcoin News: Bitcoin’s market goes through cycles, influenced by long-term holders (LTHs) who take profits when things are going well. Right now, Bitcoin is in a consolidation phase near its previous highest price. According to Glassnode, this aligns with a point where prices rise rapidly, but long-term holders start selling more.
Conclusion
The US government just moved a bunch of Bitcoin to a company called Coinbase, This is likely because they seized the Bitcoin from someone and are now deciding what to do with it, maybe even selling it. This, along with other big events in the crypto world, is making the value of Bitcoin jump around a bit. So, for investors, things might be a little bumpy for a while.
Also Read- BlackRock Bitcoin ETF Surpasses $1.1 Billion in Trading Volume
