Bitcoin (BTC) and the broader crypto market are prone to a further downtrend following a latest growth involving the US and German governments. On-chain information means that each governments need to offload a considerable quantity of their BTC holdings.
US Government Send $240 Million In Bitcoin To Coinbase Prime
On-chain analytics platform Arkham Intelligence revealed in an X (previously Twitter) post that the US government had despatched 3,940 BTC ($240 million) to Coinbase Prime. This has raised fears that the federal government could also be seeking to offload these crypto tokens, which might exert extra promoting strain on the flagship crypto.
Arkham additionally revealed that this BTC fashioned a part of the seizure from narcotics trafficker Banmeet Singh following his trial earlier this 12 months. Interestingly, Singh is thought to have offered medicine by means of the Silk Road market, a darkish net platform which the US authorities is thought to have seized a considerable quantity of Bitcoin from.
The US authorities has, prior to now, offloaded a few of the Silk Road BTC, which additionally led to important promoting strain for the flagship crypto. Their final confirmed sale got here in March after they offloaded 9,861 BTC ($216 million). They have but to substantiate the sale of the three,940 BTC moved to Coinbase, which suggests it has but to be offered.
Meanwhile, the US authorities isn’t the one one seeking to dump in the marketplace. Data from Arkham Intelligence exhibits that the German government just lately transferred 125 BTC ($7.71 million) every to crypto exchanges Kraken and Bitstamp. This follows their latest switch of 400 BTC ($24 million) to Kraken and Coinbase. Meanwhile, the German authorities additionally moved 1,000 BTC to an unknown handle (139Po), which could possibly be one other crypto trade.
The potential Bitcoin sale from the US and German governments is extra worrisome, contemplating that Bitcoin is already dealing with large promoting strain as it’s. Bitcoinist recently reported that BTC miners have offered 30,000 BTC ($2 billion) this month alone, drastically contributing to the crypto’s large decline because the month started.
Another Government Chooses To Hold
While the US and Governments proceed to dump their Bitcoin holdings, one other authorities, El Salvador, has as an alternative chosen to maintain accumulating the flagship crypto. El Salvador is thought to have adopted Bitcoin as a legal tender since September 2021 and initiated a ‘1 Bitcoin a day program’ in November 2022, whereby they buy 1 BTC day-after-day.
Data from Arkham Intelligence exhibits that they’ve caught to this coverage and at present maintain 5,794 BTC ($351.82 million). El Salvador has additionally continued to build up by means of overseas investments and its mining operations. Bitcoinist recently reported the federal government’s plans to create a Bitcoin financial institution to lure overseas buyers with frictionless Bitcoin funding.
Featured picture created with Dall.E, chart from Tradingview.com
