On August 15, Bitcoin fell further as selling pressure mounted due to new BTC transfers from the US government.
Bitcoin sellers fuel sell talk
According to data from Cointelegraph Markets Pro and TradingView, the lowest price for Bitcoin (BTC) in recent days was $57,816.
The largest cryptocurrency reacted negatively after the U.S. government confiscated 10,000 BTC ($581 million) from exchange Coinbase this year, the largest amount so far, according to data from cryptocurrency intelligence firm Arcam.
The event nullified any sense of relief over the US macroeconomic developments, with lower consumer price index (CPI) figures failing to boost BTC price performance.
Analytics platform Lookonchain reviewed the event and found that it showed a copycat market reaction to the US government’s transfer of funds throughout 2024.
“The US government transferred $15,940 worth of BTC ($966.4 million) to CoinbasePrime in three transactions this year,” the post on X said.
“Within three days of the first two transfers, the price of $BTC both dropped by about 5%.”
Axel Adler, a contributor to on-chain analytics platform CryptoQuant, suggested that large market participants were “selling the news” to dictate risk-off reactions to recent transactions.
“Every time Arkham tweets about a coin’s movement, the bears immediately start selling the market,” he claimed.
“10,000 BTC from the US government has no effect, but the fact itself causes such a reaction.”
Countries pay a price for refusing to hold BTC
As Cointelegraph reported, recent months have seen a notable short-term downtrend related to the state selling off its seized BTC holdings.
Related: 45% of Bitcoin Supply Has Not Moved in 6 Months – Study
In addition to the US, Germany has also sold off its entire stake, and the wallet Arkham tagged now contains only 0.007 BTC ($400).
The unloading took place in June and July, and the pre-sale balance was about $3.5 billion. Within a week of the final sale, Germany had already lost $124 million in profits.
Quinten, a popular social media commentator and YouTuber, predicted at the time that “this will go down in history as one of the biggest mistakes a country can make.”
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