It has been speculated that the United States Government has sold a significant portion of its bitcoin holdings following its recent transfer. On-chain data has helped clear up these rumors and has shown exactly what United States Government did with the $2 billion in bitcoin he transferred.
Did the US Government Sell $2 Billion Worth of bitcoin?
Data from the on-chain analytics platform Arkham Intelligence shows that the US government did not sell the nearly 30,000 btc it recently transferred. Instead, as Arkham Intelligence noted in a recent x (formerly twitter) article x.com/ArkhamIntel/status/1817975722662670643″ target=”_blank” rel=”noopener nofollow”>mailthe US government simply split The $2 billion in bitcoin in 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 a bitcoin/institutional-buyers-of-bitcoin/” target=”_blank” rel=”noopener nofollow”>institutional custodian.
As a featured crypto x account, bitcoin Archive x.com/BTC_Archive/status/1819305743134138766″ target=”_blank” rel=”noopener nofollow”>mentionedMoving coins is not the same as selling them, and there are situations where the wallet address in question is simply moving these coins for security reasons or for investment purposes.
Furthermore, the intention to sell one's coins is often indicated by a transfer to a centralized exchange (CEX), as these are the most liquid platforms to handle such sales. However, that is not the case in this instance, as the US government did not transfer the $2 billion to Coinbasethe CEX that you have used in the past to offload some of your bitcoin holdings.
Meanwhile, it should be noted that the US government has always been transparent in its bitcoin sales and usually confirms to the public whenever it sells some of its btc. The last sale confirmed by the US Marshals Service occurred in March, meaning that United States Government has not sold any of his btc since then.
So why is bitcoin dumping happening?
It was easy for the crypto community to speculate that the bitcoin-price-plummets-as-us-government-transfers-2b-in-seized-silk-road-btc-coincidence/” target=”_blank” rel=”noopener nofollow”>United States Government had sold the $2 billion worth of bitcoin that they had transferred, seeing the transfer coincide with bitcoin’s recent drop. However, the flagship cryptocurrency is falling for several 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 is due to the rising tensions in the middle Eastwith Iran seeking to retaliate against Israel based on the belief that the latter was responsible for the assassination of Hamas leader Ismail Haniyeh in Iran. Another reason is the supply shock that bitcoin could face with btc-after-offloading-gbtc-shares/” target=”_blank” rel=”noopener nofollow”>Genesis Recently moved $1.5 billion in bitcoin and ethereum.
According x.com/ArkhamIntel/status/1819375635539616132″ target=”_blank” rel=”noopener nofollow”>Arkham IntelligenceThese transfers are likely to be earmarked for payments to creditors, meaning bitcoin could witness a significant sell-off as Genesis pays his creditorsThe macro aspect has also contributed to bitcoin’s recent bearish trend, as US job growth in July was lower than expected.
Featured image from The Defiant, chart from TradingView
