Bitcoin (BTC) price recovered to $61,000 on June 26 following the release of details of the US government’s BTC sale.
BTC price competes with new state selling risk.
BTC/USD is struggling to maintain its gains from the previous day after Wall Street opened, according to data from Cointelegraph Markets Pro and TradingView.
Uncertain BTC price trends emerged as news of coins in wallets known to belong to US institutions was sent to the Coinbase exchange.
The total amount involved was 3,940 BTC ($240 million), according to data from cryptocurrency intelligence firm Arkham.
“There are generally two options here,” wrote prominent trader Skew in part of his response to X (formerly Twitter).
“- OTC desks can auction BTC to customers (off-market buyers) – open market auctions (sold over time on the market).”
Since then, Skew said the market reaction has been relatively muted.
“Some shorts open expecting supply to come to market, but most shorts close,” he said of the current state of the order book.
U.S. government wallets still contained more than 213,500 BTC ($13 billion) at the time of this writing.
This move joins a similar move in Germany that saw 6,500 BTC transferred from wallets a week ago. Cointelegraph reported that 900 BTC was sold on June 25th.
Travis Kling, CEO of cryptocurrency hedge fund Ikigai, said the timing of the integrated sell-off attracted the attention of market observers, calling it “interesting.”
“Why are so many governments selling BTC? It’s starting to look harmonious…” added Vinny Lingham, a crypto entrepreneur.
William Clemente, co-founder of cryptocurrency research firm Reflexivity, has suggested in recent weeks that a large-scale distribution by Bitcoin whales could occur, keeping in mind the government’s move.
He told
“I hope I’m not speaking too soon, but if Germany/USA/Gox are all selling/telegraphing, who is on the other side?”
Bitcoin ETF breaks 7-day losing streak
Looking at the latest US institutional flows, spot Bitcoin exchange-traded funds (ETFs) showed a slight increase on June 25th.
Related: Bitcoin Price Needs to End June Above $56.5K to Defend Uptrend – Analysis
They attracted $31 million, their first total inflow since June 12, according to data from sources including UK-based investment firm Farside Investors.
Popular trader Daan Crypto Trades preempted the previous day’s positive results, citing strong time-weighted average prices (TWAP) for purchases on Coinbase.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.