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 post US Government Shifts $14M Bitcoin Amid BTC Dip, New Selloff Incoming? appeared first on CoinGape.

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Filed under: News - @ July 4, 2024 12:10 pm