Bitcoin Rebounds to $61,000 Amidst Speculations of Government-owned BTC Sale
Summary:
On June 26, Bitcoin's price reached $61,000 amidst news of an upcoming Bitcoin sale by the U.S. government, leading to a struggle to hold prior gains. With 3,940 BTC ($240 million) transferred to Coinbase from a government-owned wallet, traders speculated on either an auction or an open-market sale. While market reaction remained subdued, large-scale distribution by Bitcoin whales could be in response to these government moves. Meanwhile, Bitcoin ETFs ended with a marginal increase on June 25, marking the first day of overall inflows since June 12.
The price of Bitcoin returned to the $61,000 mark on June 26, around the same time as news spread of an upcoming sale of the cryptocurrency by the U.S. government. This led Bitcoin prices to grapple with the potential risk of new state sales, as shown by data from Cointelegraph Markets Pro and TradingView, which painted a picture of Bitcoin's struggle to maintain the gains it had made the previous day.
The uncertain future of Bitcoin's price was further challenged by reports that coins from a wallet owned by the U.S. government were being moved to the Coinbase exchange. Crypto intelligence firm Arkham revealed the amount in question to be a staggering 3,940 BTC, valued at $240 million.
Skew, a renowned trader, outlined the two possible scenarios in a reaction on X (previously Twitter). He suggested that either over-the-counter desks could auction off the Bitcoin to clients or it could be sold over time on the open market.
He later noted that the market response had been relatively muted. He mentioned that while short positions were increasing in anticipation of the supply hitting the market, mostly long positions were closing out.
The U.S. government’s wallet still held over 213,500 BTC, valued at $13 billion, at the time of writing. This move echoed a similar one by Germany, which transferred 6,500 BTC from its own wallet a week earlier. On June 25, it sold off 900 BTC, as reported by Cointelegraph.
Several market watchers noted the timing of these collective sell-offs. Travis Kling, head of the crypto hedge fund Ikigai, and Vinny Lingham, crypto entrepreneur, found the coordinated sales by various governments intriguing.
William Clemente, co-founder of the crypto research firm Reflexivity, believes the recent large-scale distribution by Bitcoin whales could be due to frontrunning these government sales, explaining cryptocurrency's relative weakness to stocks.
Looking at the latest institutional flows in the U.S, the Bitcoin exchange-traded funds (ETFs) ended June 25 with a small increase. This marked the first overall day of inflows since June 12, with inflow figures standing at $31 million. This data comes courtesy of sources that include the UK-based investment firm Farside Investors.
Daan Crypto Trades, a popular trader, predicted a positive outcome the previous day, noting robust time-weighted average price buying at Coinbase.
This news piece does not constitute investment advice or recommendations. All investment and trading activities carry risk, and readers are advised to conduct thorough research before making a decision.
Published At
6/26/2024 10:20:51 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.