Markets
Markets fall on US government sell-off fears
According to Arkham Intelligence, the federal government transferred $2 billion worth of Bitcoin on Monday.
Cryptocurrency markets took a hit on Tuesday, erasing gains from the previous day, after a large amount of Bitcoin was moved from wallets linked to the US government.
Ethereal (ETH) fell 1% to $3,343, while Bitcoin (BTC) fell 4% to $66,838. Solana (SOL) and polka dots (POINT) fell by 5% and 2% respectively.
Cardano’s ADA lost 4% and XRP dropped 2%, while DOGE and BNB both dropped 5%.
On Monday, the US Marshals Service transferred $2 billion in Bitcoin to two new wallets, second to Arkham Intelligence data.
The Arkham tweeted that one of these wallets could be linked to an institutional custodian, fueling fears of a sell-off among traders. The move occurred In short following Donald Trump’s promise at the Bitcoin 2024 conference in Nashville to create a “national strategic bitcoin reserve” if re-elected.
Cryptocurrency trader and analyst pseudonym Skew She said that the US government moving assets to a new portfolio is typically a precursor to OTC auctions. “Keep an eye on this in case it has a real impact on supply on price.”
In the last 24 hours, 42,008 traders were liquidated, with total liquidations amounting to $167.47 million, second to CoinGlass.
Ethereum ETFs Face Significant Outflows
Spot Ethereum ETFs continued their slide on Monday, seeing $98.3 million in outflows, according to Farside Investors. data.
Michaël van de Poppe, CEO of MN Trading, you think that outflows from the Grayscale Ethereum Trust will continue.
“I expect another week of stagnant outflow to calm down once we hit $5-6 billion,” he said. “From there, it’s only up.”
Spot Ether ETFs have had a rocky start to their first week of trading. They have seen cumulative net outflows of $340 million, with over $1.5 billion in net outflows from Grayscale’s ETHE.
Stock futures were relatively unchanged Tuesday morning. Dow Jones Industrial Average futures fell 0.05%, while S&P 500 futures slipped 0.04% and Nasdaq 100 futures fell 0.02%.
The Federal Reserve’s two-day policy meeting begins Tuesday. Traders will also be keeping an eye on the July jobs report, due Friday.