Over the final week, we have now been seeing the German authorities continually liquidating their Bitcoin holdings by way of widespread exchanges like Coinbase and Kraken. On Wednesday, June 26, the U.S. authorities joined the bandwagon transferring a complete of 4,000 Bitcoins to Coinbase Prime. Soon after, the Bitcoin worth got here beneath promoting stress dropping by 1.5% and slipping beneath $61,000. However, CryptoQuant’s CEO said that the present promoting by the governments is apparent FUD and never the actual cause behind the BTC worth drop.
U.S. Government’s Bitcoin Sale Unlikely to Impact Market
Addressing considerations concerning the present Bitcoin sale by the U.S. authorities, CryptoQuant CEO Ki Young Ju said that this 4,000 BTC sale is unlikely to influence the market.
He additional said that Coinbase Prime holds the capability to deal with substantial liquidity dealing with between 20,000 and 49,000 BTC during times of excessive spot ETF inflows. Even on low Bitcoin ETF inflows, the alternate handles liquidity at 6,000 to fifteen,000 BTC.
“I’m posting this because I’m tired of ‘government selling’ FUDs,” Ju said whereas emphasizing that the sale shouldn’t be a serious reason for concern amongst market contributors.
US gov’t bought 4K #Bitcoin right now, however much less prone to influence the market.
Coinbase Prime dealt with 20-49K BTC in sell-side liquidity each day throughout excessive spot ETF inflows and 6-15K each day throughout low spot ETF inflows.
Posting this as a result of I’m bored with “gov’t selling” FUDs. pic.twitter.com/4IrO1aBGO6
— Ki Young Ju (@ki_young_ju) June 26, 2024
Earlier this 12 months in April, the U.S. authorities transferred 30,175 BTC valued at $2 billion to the identical pockets on Coinbase.
Also Read: Bitcoin Bears Still In Control of the Market
Similar to the U.S. authorities, we have now been seeing the German authorities has additionally moved over 2.200 BTCs over the previous seven days. Despite these sell-offs, Germany’s Bitcoin holdings have considerably appreciated, now valued at $2.76 billion, with $1.1 billion in unrealized revenue.
What’s Causing the BTC Price Correction
The latest BTC price correction has been majorly as a consequence of miner capitulation who’ve struggling to maintain their operations going after the latest Bitcoin halving occasion. Thus, the BTC miners have been the web sellers out there placing extra promoting stress on BTC.
As of press time, the Bitcoin price is buying and selling 1.5% down at $60.630 with a market cap of beneath $1.2 trillion. Over the final week, Bitcoin has misplaced greater than $100 billion in market cap.
Also Read: $6.6 Billion of Bitcoin Options to Expire on Friday
The introduced content material could embrace the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty in your private monetary loss.
