Bitcoin
US Government Transfers $14 Million in Bitcoin Amid BTC Crash, New Sell-Off Coming?
The US government recently transferred a substantial amount of Bitcoin amid the cryptocurrency’s plummeting value. The development has sparked speculation about a potential new sell-off in the cryptocurrency 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.
US Government Bitcoin Movement
According to Arkham Intelligence, a US government wallet has 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 crypto fraud scheme. The duo allegedly deceived investors with promises of high returns from cryptocurrency mining operations and related ventures.
This transfer follows a smaller move of 11.84 BTC (valued at around $726,000) to a new address, which some analysts see as a test transaction preceding a larger transfer. It is worth noting that the United States Government had already transferred 4,000 Bitcoins to Coinbase Prime, coinciding with a notable drop in the price of Bitcoin.
In a parallel development, the German government liquidated 1,300 Bitcoin (worth nearly $76 million) on major cryptocurrency exchanges on the same day. This sale preceded a drop in Bitcoin’s price below $58,000, further fueling concerns about market stability.
Read too: German government dumps another 1,300 Bitcoins to Coinbase, Kraken and Bitstamp
Market sentiment and future outlook
The cryptocurrency market appears to be heading back into bearish territory. Bitcoin is currently trading at $57,473.84 with a 24-hour trading volume of $34.3 billion. The coin is down 4.56% over the past day and is trading in a range between $60,449.99 and $57,196.68. Bitcoin’s live market cap is $1.1 trillion.
This government activity is taking place against a backdrop of market volatility. The global cryptocurrency market cap has fallen 20% to $2.15 trillion, with a 4.20% decline in the past 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 to fear, partly due to panic selling by investors before Mount Gox an imminent $10 billion payment in BTC and BCH, set to begin this week. Major financial players such as JPMorgan and CoinShares have issued warnings about potential market disruptions, particularly in relation to a possible liquidation by Mt. Gox creditors.
Read too: Ripple Vs SEC Update: Lawyers Reveal How SEC’s Response Impacts Final Decision
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