Bitcoin (BTC) reached a price of $61,000 on June 26 as news broke about an upcoming BTC sale by the United States government.
BTC/USD faced challenges in maintaining its previous day’s gains after the Wall Street opening, as shown by data from Cointelegraph Markets Pro and TradingView.
The uncertain behavior of BTC price coincided with reports of coins from a wallet belonging to the U.S. government being sent to the exchange Coinbase. According to data from crypto intelligence firm Arkham, a total of 3,940 BTC ($240 million) was involved in the transaction.
Popular trader Skew discussed the possible outcomes of this development, stating, “There’s typically two options here.” He further commented on the market reaction, noting that it had been relatively subdued, with some shorts opening in anticipation of increased supply.
At the time of writing, the U.S. government wallet still held over 213,500 BTC ($13 billion).
This move by the U.S. government followed a similar one by Germany, which transferred 6,500 BTC from its wallet the previous week. On June 25, 900 BTC were sold, according to Cointelegraph.
The timing of these combined sell-offs caught the attention of market observers, with Travis Kling, head of crypto hedge fund Ikigai, describing it as “interesting.” Crypto entrepreneur Vinny Lingham also questioned the motive behind multiple governments selling their BTC, suggesting possible coordination.
William Clemente, co-founder of crypto research firm Reflexivity, speculated that the recent selling by Bitcoin whales could have been in anticipation of these government moves. He noted that this may explain the relative weakness of crypto compared to stocks.
Institutional flows in the U.S. showed a modest increase for spot Bitcoin exchange-traded funds (ETFs) on June 25. These funds attracted $31 million, marking the first day of inflows since June 12, according to data from Farside Investors, a United Kingdom-based investment firm.
Popular trader Daan Crypto Trades had anticipated this positive outcome, pointing out strong time-weighted average price (TWAP) purchasing at Coinbase.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and consider the risks involved before making any investment or trading decisions.