The US government sent 4K BTC to Coinbase and the price of Bitcoin fell by $61,000
Bitcoin (BTC) price rebounded to $61,000 on June 26 as details of the upcoming BTC sale by the United States government were released.
BTC Price Faces New Territorial Selling Risk
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD struggling to regain previous gains after the Wall Street open.
Uncertain BTC price behavior comes amid news of the US-founded wallet's distribution of coins to exchange Coinbase.
According to data from crypto intelligence firm Arkham, the total stake was 3,940 BTC ($240 million).
“There are basically two options here,” wrote popular trader Skew in a response on X (formerly Twitter).
“- OTC desks sell BTC to clients (from market buyers) – Open market auction (sells on the market over time).”
Skew went on to say that the market reaction was subdued by comparison.
“Some shorts are opened in anticipation of supply coming to the market, but otherwise it is usually closed,” he commented on the situation in the order books.
The US government's wallet holds more than 213,500 BTC ($13 billion) as of this writing.
The move is similar to the one in Germany who transferred 6,500 BTC from his wallet a week ago. 900 BTC was sold on June 25, Cointelegraph reported.
The timing of the combined sale has not escaped market watchers' attention, with Travis Kling, head of crypto hedge fund Ikigai, describing it as “exciting.”
Why are so many governments selling their BTC? Starting to look coordinated…” added crypto entrepreneur Vinny Lingham.
William Clemente, co-founder of crypto research firm Reflexivity, has suggested that the large-scale circulation of Bitcoin in recent weeks may be due to government activity.
“My guess is that the whales who sold so much over the last few weeks that led to these sell-off headlines explain the relative weakness of crypto,” he told X Subscribers.
“I hope I'm not saying it too soon, but if Germany/US/Gox are all selling/selling telegraph services, who's buying on the other side?”
Bitcoin ETFs break their 7-day losing streak
A look at the latest U.S. institutional flows ended June 25 shows a modest increase in positions in Bitcoin exchange-traded funds (ETFs).
RELATED: Bitcoin price must end June to prevent advance above $56.5K – analysis
These have managed to attract $31 million, indicating a day of total inflows since June 12, according to sources including UK-based Farside Investors.
Prominent trader Diane CryptoTrades pre-empted the positive results a few days ago, noting that the strong time weighted average price, or TWAP, was buying at Coinbase.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
