Over the last week, we have been seeing the German government constantly liquidating their Bitcoin holdings through popular exchanges like Coinbase and Kraken. On Wednesday, June 26, the U.S. government joined the bandwagon moving a total of 4,000 Bitcoins to Coinbase Prime. Soon after, the Bitcoin price came under selling pressure dropping by 1.5% and slipping under $61,000. However, CryptoQuant’s CEO stated that the current selling by the governments is plain FUD and not the real reason behind the BTC price drop.
U.S. Government’s Bitcoin Sale Unlikely to Impact Market
Addressing concerns about the current Bitcoin sale by the U.S. government, CryptoQuant CEO Ki Young Ju stated that this 4,000 BTC sale is unlikely to impact the market.
He further stated that Coinbase Prime holds the capacity to handle substantial liquidity handling between 20,000 and 49,000 BTC during periods of high spot ETF inflows. Even on low Bitcoin ETF inflows, the exchange handles liquidity at 6,000 to 15,000 BTC.
“I’m posting this because I’m tired of ‘government selling’ FUDs,” Ju stated while emphasizing that the sale shouldn’t be a major cause of concern among market participants.
US gov’t sold 4K #Bitcoin today, but less likely to impact the market.
Coinbase Prime handled 20-49K BTC in sell-side liquidity daily during high spot ETF inflows and 6-15K daily during low spot ETF inflows.
Posting this because I’m tired of “gov’t selling” FUDs. pic.twitter.com/4IrO1aBGO6
— Ki Young Ju (@ki_young_ju) June 26, 2024
Earlier this year in April, the U.S. government transferred 30,175 BTC valued at $2 billion to the same wallet on Coinbase.
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Similar to the U.S. government, we have been seeing the German government has also moved over 2.200 BTCs over the past seven days. Despite these sell-offs, Germany’s Bitcoin holdings have substantially appreciated, now valued at $2.76 billion, with $1.1 billion in unrealized profit.
What’s Causing the BTC Price Correction
The recent BTC price correction has been majorly due to miner capitulation who have struggling to keep their operations going after the recent Bitcoin halving event. Thus, the BTC miners have been the net sellers in the market putting additional selling pressure on BTC.
As of press time, the Bitcoin price is trading 1.5% down at $60.630 with a market cap of under $1.2 trillion. Over the last week, Bitcoin has lost more than $100 billion in market cap.
Also Read: $6.6 Billion of Bitcoin Options to Expire on Friday
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
