The US government has moved 29,800 BTC, valued at $2 billion, from seized Silk Road funds. Following this transfer, the Bitcoin price dropped 1.3%, trading at $66,890.12.
During the July 30 Asian trading session, Bitcoin stayed at lower levels after hitting resistance and dropping $4,000 in value. TradingView data showed BTC/USD around $66,500 at the daily opening. The previous day had been volatile, with Bitcoin briefly reaching $70,000 before falling about 6% within a few hours.
US Government Moves $2 Billion in Bitcoin, Impacting Price
The US government’s Bitcoin wallet, containing funds seized from the Silk Road, transferred approximately 29,800 BTC to different addresses today. This transfer, valued at over $2 billion, caused Bitcoin’s price to drop by 1.2% in just a few minutes, with the current price at $66,890.12.
US government transaction. Image: Arkham Intelligence
As of now, the recipient address of the Bitcoin transfer remains unknown. On-chain data platform Arkham Intelligence reports that the US government’s Bitcoin wallet holds over $12 billion in Bitcoin, equivalent to nearly 183,440 BTC.
US Bitcoin Transfer Sparks Market Concerns
The crypto market was just starting to recover from a previous “government dump” when German authorities sold 49,858 BTC for $2.89 billion over 23 days, causing Bitcoin’s price to drop to as low as $54,000.
Now, the recent movement of 29,800 BTC by the US government’s Bitcoin wallet has left investors unsettled. The reason behind this transfer remains unclear, leading to speculation about whether it represents an attempt to sell the BTC or simply a reallocation of funds.
Bitcoin Price Targets and Market Reactions Amid Recent Volatility
Popular investor Roman has set near-term Bitcoin price targets of $64,000 and $60,000. He predicts that a drop to these levels could trigger a short squeeze, potentially driving Bitcoin back to the upper end of its long-term trading range. Roman believes that extreme bearish sentiment at these price points could eventually lead to a strong upward movement.
Bitcoin experienced significant volatility recently, with a rapid rejection at resistance leading to a $4,000 drop. During the July 30 Asian trading session, Bitcoin was trading around $66,500, reflecting a daily opening price. The previous day saw Bitcoin briefly reach $70,000 before falling by approximately 6% within a few hours.
This price movement coincided with a $2 billion transfer of BTC from a US government wallet, which contrasted with presidential candidates’ promises to establish a strategic Bitcoin reserve. William Clemente of Reflexivity noted that the timing was likely intentional, suggesting a short-term bullish phase before a potential upward price movement. Keith Alan of Material Indicators expressed hope for a recovery to maintain an ascending trend line, emphasizing the need for the $69,000 level to turn into support before reaching new all-time highs.
In related analyses, on-chain analytics platform CryptoQuant observed increasing Bitcoin withdrawals from exchanges. Analyst CryptoOnchain noted that rising withdrawal amounts could signal potential future price increases and reduced volatility.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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