According to Arkham Intel, the U.S. government transferred Bitcoin worth $593.5 million to its preferred crypto brokerage platform, Coinbase Prime, on August 14.
Large Bitcoin Transfer
The U.S. authorities sent 10,000 Bitcoin to the 'bc1ql' wallet two weeks ago. Following the news, BTC price dropped by 3.6%, although the decline began before Coinbase Prime received the funds. At that time, one BTC cost around $59,100 despite an initial market spike due to positive CPI data.
Election Preparation or Strategic Move?
In late July, the U.S. government also sent $2 billion in Bitcoin, likely to Coinbase. This occurred after former president Donald Trump pledged to create a strategic Bitcoin reserve. This sparked speculation about whether the current administration plans to offload some or most of its BTC holdings before the winter elections. Despite the latest transfers, the U.S. remains the largest sovereign BTC holder, with more than $11 billion in Bitcoin.
Potential Market Impact
Sell pressure and added volatility may arise in the BTC market due to possible U.S. government liquidations on Coinbase. In addition to the cumulative $2.5 billion transferred by American authorities, Mt. Gox customer repayments are also ongoing. Crypto exchange BitGo received $2 billion in BTC from the Mt. Gox Trustee, and some claimants may take profits. How BTC might handle this sell demand remains to be seen, but spot BTC ETF inflows may offset market dips.
The latest Bitcoin transfers by the U.S. government and the related speculations may significantly impact the market. How BTC will react remains to be observed in the near future.
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