Bitcoin (BTC) surged back to $61,000 on June 26 amid reports of an upcoming BTC sale by the United States government.
BTC/USD’s 1-hour chart, sourced from TradingView, illustrated BTC’s struggle to maintain previous gains post Wall Street’s opening. The uncertain BTC price behavior coincided with news of a significant transfer from a wallet linked to the U.S. government to Coinbase exchange. According to Arkham, a crypto intelligence firm, the total transaction amounted to 3,940 BTC ($240 million).
“There are typically two scenarios here,” noted Skew, a prominent trader, in a partial response on X (formerly Twitter).
Market data from Bitcoin, sourced from Skew/X, indicated a comparatively muted market reaction. Skew observed, “Some shorts opened in anticipation of increased market supply, but otherwise, long positions were mostly closing out.”
As of the latest update, the U.S. government’s wallet still holds over 213,500 BTC ($13 billion). This move mirrors a recent action by Germany, which transferred 6,500 BTC from its reserves. On June 25, Germany sold 900 BTC, as reported by Cointelegraph.
The timing of these coordinated sell-offs did not go unnoticed among market observers. Travis Kling, head of crypto hedge fund Ikigai, described it as “interesting.”
Travis Kling’s remarks were captured in a screenshot. Crypto entrepreneur Vinny Lingham added, “Why are multiple governments divesting their BTC? Starting to look coordinated…”
William Clemente, co-founder of crypto research firm Reflexivity, speculated that the recent significant selling by Bitcoin whales might have anticipated these governmental actions. “I suspect much of the recent selling over the past few weeks was whales anticipating these sell-off announcements, which could explain crypto’s relative weakness compared to stocks,” he told X subscribers.
Bitcoin ETFs managed to break a 7-day losing streak, with the latest U.S. institutional flows showing a modest increase on June 25 for spot Bitcoin exchange-traded funds (ETFs). According to data from Farside Investors, these funds attracted $31 million, marking the first day of aggregate inflows since June 12.
A screenshot of U.S. spot Bitcoin ETF netflows sourced from Farside Investors illustrated this positive trend. Popular trader Daan Crypto Trades anticipated this outcome the previous day, noting robust time-weighted average price (TWAP) purchasing at Coinbase.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.