There have been speculations that United States Government sold a significant portion of his Bitcoin holdings after a recent transfer. On-chain data helped dispel those rumors and showed exactly what United States Government did with $2 billion worth of transferred Bitcoins.
Did the US government sell $2 billion worth of bitcoin?
Data from the chain analytics platform Arkham Interview shows the US government has not sold the nearly 30,000 BTC it recently transferred. Instead, as Arkham Intelligence noted in a recent X (formerly Twitter) fastingthe US government simply division $2 billion worth of Bitcoins to two addresses.
The government sent 19,800 BTC ($1.33 billion) to another of its wallet addresses (bc1qn) and the remaining 10,000 BTC ($669.35 million) to another address believed to belong to institutional guardian.
As a prominent X Bitcoin Archive crypto account mentionedMoving coins is not the same as selling them. There are times when a wallet address simply moves coins for security or investment purposes.
Moreover, the intention to sell one’s coins is usually indicated by a transfer to a centralized exchange (CEX), as these are the most liquid platforms to handle such transactions. However, this is not the case here, as the US government did not transfer $2 billion to Coin baseCEX exchange, which it has used in the past to sell some of its Bitcoin holdings.
Meanwhile, it’s worth noting that the US government has always been lucid about its Bitcoin sales and usually confirms this to the public when it sells some of its BTC. The last confirmed sale by the US Marshals was in March, meaning United States Government He hasn’t sold any of his BTC since then.
So why is Bitcoin losing value?
It was uncomplicated for the cryptocurrency community to speculate that United States Government sold $2 billion worth of Bitcoin that he transferred, seeing as the transfer coincided with Bitcoin’s recent decline. However, the flagship cryptocurrency is kicking things down for a few other reasons unrelated to the US government, as it has been confirmed that they have not sold any BTC recently.
One of the reasons why the price of bitcoin is currently falling rapidly is the growing tensions in the market. Near Eastand Iran wants to take revenge on Israel, based on the belief that the latter was responsible for the assassination of Hamas leader Ismael Haniyeh in Iran. Another reason is the supply shock that Bitcoin may face Genesis $1.5 billion was recently transferred Bitcoin and Ethereum.
According to Arkham Interviewthese transfers will likely be used to repay creditors, meaning Bitcoin could experience a wave of significant sell-offs as Genesis repays creditorsMacroeconomic factors have also contributed to Bitcoin’s recent downtrend, with US job growth coming in lower than expected in July.
Featured image from The Defiant, chart from TradingView
