The post Why is Bitcoin down today? How the U.S. govt spurred BTC’s price drop appeared on BitcoinEthereumNews.com.

The U.S. government transferred BTC worth billions of dollars during a time when sell pressure was already high. However, a bullish divergence appeared on BTC’s chart, hinting at a trend reversal. Bitcoin [BTC] had showcased a promising performance over the past few days, as it inched closer towards $70k. However, bears stepped up in the last 24 hours and pushed the king coin’s price down. Let’s take a closer look at the market to find out why Bitcoin is down today.  Why is Bitcoin down today? As sellers took control, BTC’s price dropped by over 4% in the last 24 hours, per CoinMarketCap. AMBCrypto had earlier reported that there were chances of BTC dropping to $66k. At the time of writing, BTC was trading at $66,672.03 with a market capitalization of over $1.32 trillion. On the 29th of July, IntoTheBlock had pointed out a possible reason behind BTC’s latest dip. As per the tweet, almost all BTC holders were in profit. Though this looked optimistic on the surface, it might have instead motivated investors to sell their holdings to earn profits, causing this price correction. The role of the U.S. government Lookonchain revealed yet another possible reason for Bitcoin’s price decline. On the 29th of July, the U.S. government transferred BTC worth more than $2 billion to a new wallet. At press time, the U.S. government held 179,155 BTC, worth $12.14 billion. Generally, when governments make such huge transfers, it affects market sentiment and causes volatility. For example, a few weeks ago, the German government sold all of its BTC holdings, which impacted Bitcoin’s price.   Since the U.S. is a major market for crypto, it’s not a surprise to see BTC’s falling because of a major transfer made by its government.  There is hope for bulls However, AMBCrypto’s analysis…

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Filed under: News - @ July 30, 2024 10:26 pm