Markets
US Government Bitcoin Transfer to Coinbase Sparks Market Speculation By Investing.com
Investing.com – The report that the US government transferred approximately 3,940 BTC worth approximately $241 million to Coinbase (NASDAQ:) has added a new element of pressure to the cryptocurrency market.
After being granted authority to act on seized assets, the U.S. government continues to move cryptocurrencies to exchanges. In April, the government had previously contributed to the market decline by moving a larger amount of Bitcoin worth $2 billion. While such actions are seen as part of the U.S. intervention in the cryptocurrency market, some believe that the government is taking strategic steps to reduce its cryptocurrency holdings.
The US government holds a large amount of BTC
According to Lookonchain data, the US government currently holds about 213.46 BTC worth about $13.07 billion. The US holds the largest amount of Bitcoin among governments. Globally, about 2.7% of the Bitcoin in circulation is held by governments, mainly the US, China, the UK, Germany, and El Salvador. Meanwhile, this move by the US follows the transactions of the German government, which has been moving Bitcoin to cryptocurrency exchanges since last week.
The downtrend of the Bitcoin market has intensified in recent days with sales by government institutions. However, many market experts attribute the main reason for Bitcoin’s decline to miner sales.
While Bitcoin’s pullback is believed to be largely due to miner sell-offs, the US continues to create anxiety in the market with its large amount of BTC holdings. Market speculation is building around the idea that the US has the potential to run the market with its Bitcoin reserves, and it is highlighted that such cryptocurrency transfers can create a greater impact with panic selling in the market rather than with the amount sold.
Current situation of Bitcoin
After closing yesterday down about 1.5% below $61,000, Bitcoin has seen an acceleration in buying, especially towards U.S. trading hours today. The largest cryptocurrency is currently recovering from yesterday’s losses and is moving towards $62,000.