Rumors surrounding the US government’s $2 billion Bitcoin transfer sparked speculation about a potential sell-off. However, on-chain data has clarified the situation, revealing the actual movement of the transferred funds.
Details of the Bitcoin Transfer
The on-chain analytics platform Arkham Intelligence has revealed that the US government did not sell the nearly 30,000 BTC it transferred. Instead, the funds were split into two addresses: 19,800 BTC ($1.33 billion) to one of the government’s wallet addresses (bc1qn) and the remaining 10,000 BTC ($669.35 million) to an institutional custodian’s address.
Moving coins does not necessarily imply selling them, as highlighted by crypto experts. The absence of transfers to centralized exchanges, typically used for selling, further supports the notion that the US government did not engage in a sell-off. Transparency has been a hallmark of the government’s BTC sales, with the last confirmed sale by the US Marshals service dating back to March.
Factors Contributing to Bitcoin’s Price Drop
Despite initial conjectures linking Bitcoin’s price decline to the government transfer, it has been clarified that the dump was driven by other factors. Geopolitical tensions in the Middle East and significant transfers by entities like Genesis have impacted Bitcoin’s value. Genesis’ transactions for creditor repayments may lead to further sell-offs, while broader economic indicators like US job growth have also influenced Bitcoin’s recent downtrend.
Image credits: The Defiant, Chart source: TradingView
