The U.S. government has transferred nearly $2 billion worth of Bitcoin (BTC) today. This transaction has sparked speculations of an imminent dump and its negative impact on the ongoing BTC price rally. Some market participants even fear that it could hinder BTC’s surge beyond the critical psychological level of $100,000.
US Government to Sell Bitcoin?
According to the latest data, the U.S. The government shifted 19,799.99 BTC, valued at approximately $1.92 billion, to a new wallet address, sparking concerns over potential market volatility. The transaction, linked to the address bc1q0…spm, has caught the attention of crypto traders and analysts.
Blockchain tracking firm Arkham Intelligence flagged the movement, which is believed to stem from Bitcoin seized in high-profile cases, such as the Silk Road takedown. Historically, such large-scale movements by government entities have triggered speculation about potential sell-offs, adding pressure to Bitcoin price.
ALERT: US GOVERNMENT MOVING $1.92B BTC TO NEW ADDRESS
Address: bc1q0av33ktzrkjps8exjex5gtv98vx225uqmzhspm pic.twitter.com/JSELsjFg5T
— Arkham (@arkham) December 2, 2024
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Thereafter, the U.S. government shifted 9,999.99 BTC worth $963 million to Coinbase Prime, indicating a selloff. Also, the Biden administration is expected to initiate similar moves in the near future before President-elect Donald Trump takes the office on January 20. The potential reason could be Trump’s plans of a strategic BTC reserve that the current administration is against.
BTC Price to Crash?
Though the amount of BTC anticipated to be dumped by the U.S. government seems high, it could have relatively no impact on the market. The institutional inflows from MicroStrategy, Metaplanet, MARA, Rumble, and others could significantly absorb the shock.
Also, the spot Bitcoin ETF inflows could act as a hedge against a significant drop in the BTC price. Hence, analysts have doubled down on their prediction of BTC price reaching $100,000 before the end of 2024.
However, the BTC price lost momentum and dropped to the $95,000 level from $97,000 earlier. As of writing, Bitcoin’s value stood at $95,508.45, down by 2.36% on Monday, December 2.
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Also Read: MicroStrategy Buys 15400 Bitcoin Amid BTC Rally to $100K
