The US government has recently transferred a substantial amount of Bitcoin amid the dip in the cryptocurrency’s value. This development has sparked speculation about a potential new selloff in the crypto market. The transaction, involving 237 BTC worth approximately $14 million, was executed from a government wallet containing funds seized from Estonian crypto entrepreneurs involved in a major fraud scheme.
U.S. Government’s Bitcoin Movement
According to Arkham Intelligence, a U.S. government wallet transferred 237 BTC (worth approximately $13.67 million) to another address. These funds were originally seized from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin, who were implicated in a large-scale crypto fraud scheme. The pair had allegedly deceived investors with promises of high returns from crypto mining operations and related ventures.
This transfer follows a smaller movement of 11.84 BTC (valued at about $726,000) to a new address, which some analysts view as a test transaction preceding a larger transfer. It’s worth noting that the U.S. government had previously moved 4,000 Bitcoin to Coinbase Prime, coinciding with a noticeable drop in Bitcoin’s price.
In a parallel development, the German government liquidated 1,300 Bitcoin (worth nearly $76 million) on major crypto exchanges on the same day. This sale preceded a drop in Bitcoin’s price below $58,000, further stoking concerns about market stability.
Also Read: German Govt Dumps Another 1300 Bitcoin To Coinbase, Kraken & Bitstamp
Market Sentiment and Future Outlook
The crypto market appears to be swinging back towards bearish territory. Bitcoin is currently trading at $57,473.84, with a 24-hour trading volume of $34.3 billion. The coin has declined by 4.56% in the past day and is trading in a range between $60,449.99 and $57,196.68. Bitcoin’s live market cap stands at $1.1 trillion.
This governmental activity is occurring against a backdrop of market volatility. The global cryptocurrency market capitalization has dropped by 20% to $2.15 trillion, with a 4.20% decline in the last 24 hours alone. Bitcoin’s price hit a 24-hour low of $57,800, testing a key support level and potentially risking a further drop to $52,000.
Market sentiment has shifted towards fear, partly due to panic selling by investors ahead of Mt. Gox’s impending $10 billion repayment in BTC and BCH, set to begin this week. Major financial players like JPMorgan and CoinShares have issued warnings about potential market disruptions, particularly concerning a possible selloff by Mt. Gox creditors.
Also Read: Ripple Vs SEC Update: Lawyers Reveal How SEC’s Reply Impact Final Decision
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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