Bitcoin Price Drops After US Government Sales

Bittime - Bitcoin has recently experienced a significant price decline. This decline occurred after news emerged that the US government had carried out a massive transfer of confiscated Bitcoin to the Coinbase exchange.  

Sale of Bitcoin by the US Government 

Today, Bitcoin prices experienced another decline after the US government transferred a large number of confiscated Bitcoins. Axel Adler Jr., a contributor at on-chain analysis platform CryptoQuant, explained that the market's risk-averse reaction was triggered by selling news related to this transfer. 

Although the sale of 10,000 Bitcoins by the US government itself did not have a major immediate impact, the fact that the news was widespread triggered a sell-off among market participants.

According to crypto intelligence firm Arkham, the US government has transferred 10,000 seized BTC, with a value of up to $581 million, to Coinbase for sale. This is the largest batch seized by the US government this year. 

This event, which should not have had a major impact, actually worsened market sentiment, especially when various changes occurred in macroeconomics in the US, such as the Consumer Price Index (CPI), failed to boost Bitcoin prices.

Read Also: 45% of Bitcoin Supply Yet to Move Amid Market Volatility

Market Reaction to US Bitcoin Sale

Platform analisis Lookonchain pointed out that Bitcoin transfers by the US government throughout 2024 have repeatedly triggered similar reactions from the market. This year, the US government has transferred a total of 15,940 BTC worth $966.4 million to Coinbase Prime in three separate transactions. 

In the three days after the first two transfers, the price of Bitcoin fell by about 5%. This price decline seems to strengthen the bearish narrative among market players. Axel Adler also emphasized that large market players have an important role in determining the market reaction to this latest Bitcoin transfer. 

When Arkham announced this coin movement, many market players immediately sold their assets, thereby triggering a downward price trend. Although the 10,000 BTC being sold by the US government should not have had a significant impact, the reality is that this news was enough to trigger a massive sell-off.

Impact of Bitcoin Sales by Country

The sale of Bitcoin by the US government is not the only such event to influence market. In recent months, several countries, including Germany, have also sold confiscated Bitcoin reserves. 

In fact, Germany has sold its entire Bitcoin holdings, which were previously worth around $3.5 billion. However, this is considered a big mistake. The government's sale of Bitcoin could be seen as a move to avoid risks or capitalize on profits from already high prices. 

However, this decision also suggests that these countries may be missing opportunities for greater profits in the future. For example, Germany lost $124 million in potential profits in just a week after their last sale.

Read Also: German Government Conducts Massive Bitcoin Transactions in 24 Hours

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

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