Bitcoin
BTC Slips as US Government-Linked Selling Pressure Looms
Bitcoin has advanced towards $66,000, erasing all of last week’s gains, with sentiment hurt as a significant amount of the asset was moved out of US government-linked wallets, raising concerns about imminent selling pressure among traders. BTC lost as much as 5% before recovering slightly over the past 24 hours as the US Marshals Service moved $2 billion worth of BTC to two new wallets. Tracking service Arkham estimated that at least one of the wallets was likely a custodial service. Bitcoin was trading around $66,550 at press time, down 4.3% from 24 hours ago. The broader crypto market, as measured by the CoinDesk 20 Index, is down 3.5%.
Spot ether ETFs were spotted negative net flows in the first week, with massive outflows from the current Grayscale Ethereum Trust (ETHE) overwhelming interest in competing products. The bitcoin equivalent funds, which debuted in January, raked in $1 billion in net inflows during their first four days, even as they suffered sizable outflows from a previously existing Grayscale fund. Overall, spot ETH ETFs lost $340 million in net outflows, with more than $1.5 billion coming from the Grayscale Trust, according to Farside Investors. Ether has outperformed the broader digital asset market following Monday’s drop. ETH is trading at $3,330, down 1.67% compared with CD20’s 3.5%.
Donald Trump’s Promises on Cryptocurrencies could mean that the price of bitcoin in the short term is tied to the likely outcome of the November presidential electionsaid investment bank Jefferies. Trump has vowed to maintain a strategic reserve of bitcoin and never sell the government-seized bitcoin (BTC) at BTC 2024 in Nashville on Saturday. “His proposals for the industry to install crypto-friendly regulators could have the effect of the near-term price of BTC being tied to the outcome of the U.S. presidential election,” analysts Jonathan Petersen and Joe Dickstein wrote. Jefferies notes that Trump has promised to pick crypto-friendly regulators, create a presidential advisory board for the crypto industry, and make the country the “crypto capital of the planet.”