Bitcoin in Trouble: US Government Sells 4,000 BTC

Bitcoin fell back below $61,000 overnight from June 26 to June 27 after the US government sent 4,000 BTC to Coinbase. According to on-chain analytics platform Arkham Intelligence, the transfer involved 3,940 Bitcoin for a total of $240 million.

What could this mean?

“There are normally two options,” popular analyst Skew wrote on Twitter. “OTC desks can sell the Bitcoin to their customers or they can simply sell the Bitcoin on the market as time goes on.”

According to Skew, the market reaction was not extreme. “A few shorts were opened expecting some Bitcoin to enter the market, but otherwise it was mainly longs that closed,” he wrote about the status quo in the order books.

The US government still owns over 213,500 Bitcoin at the time of writing, worth $13 billion. What is notable is that the US government and the German government put their Bitcoin up for sale at about the same time.

An attack on Bitcoin?

Is this an attack on Bitcoin by governments? Some analysts dare to say that on Twitter.

That seems unlikely though. If America really wanted to attack, they would have sent some more Bitcoin to Coinbase. Same goes for the German government.

Now, we’re talking about significant amounts, but we just wrote that America owns $13 billion worth of Bitcoin. 4,000 Bitcoin is nothing compared to that. In that respect, they could have tortured the market a lot more if they wanted to.

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