On August 15, Bitcoin continued to decline after the US government transferred 10,000 BTC to the Coinbase exchange, adding pressure to the market.
US Government BTC Sales
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin (BTC) reached multi-day lows at $57,816 for BTC/USD. This happened due to the largest sale of confiscated coins by the US government this year, totaling 10,000 BTC ($581 million).
Market Reaction
The analytical platform Lookonchain showed similar market reactions to US government BTC transfers throughout 2024. In a post on X, Lookonchain reported that 'with each of the first two transactions, the price of BTC dropped by around 5% within three days.' Analyst at CryptoQuant, Axel Adler Jr., noted that large market players reacted to the latest news by selling BTC.
Sales Mistake? Analysts' Opinion
Other countries are also selling their BTC reserves. For instance, Germany sold off its entire tranche, leaving just 0.007 BTC ($400) on the balance. This occurred in June and July, and within a week after the final sale, Germany had already lost out on $124 million in potential profits. Critics see this as a major mistake.
Sales of BTC by the US government and other countries continue to exert significant influence on the market. Analysts believe that such actions create short-term bearish sentiment and could be a mistake in the long run.
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