Summary
- The latest 10,000 BTC US government selling does not affect anything, CryptoQuant author says.
- Bears reaction fuels the sell-off narrative.
The latest US government Bitcoin selling is not that significant, but bears trigger the sell-off narrative, according to the latest reports.
CryptoQuant’s author Axel Adler shared a post via his X account, saying that every time Arkham tweets about coin movements, bears instantly start dumping the market.
According to him, 10,000 BTC sold by the US does not affect “anything,” yet the mere fact causes such a reaction.
Following yesterday’s announcement that the US government moved 10,000 BTC, the price of Bitcoin dropped, and today it reached prices under $58,000.
At the moment of writing this article, BTC is trading above $58,000, down by over 4% in the past 24 hours.
On August 14, Bitcoin reached prices above $61,000 ahead of the market sell-off.
Bitcoin’s price managed to recover relatively quickly following the August 5 sell-off that saw liquidations in both equities and crypto markets. The day was called by some in the crypto industry Crypto Black Monday due to the significant decline.
Short-Term Bearish Narratives
The recent months have seen short-term bearish narratives that involved nation-states selling Bitcoin holdings.
The German government and the US are the best examples in this direction. While the US government still has over $12 billion in Bitcoin, according to the latest reports, the German Government’s wallet now includes 0.007 BTC.
The German government selling took place back in July and June, and the balance before the move was worth $3.5 billion, within a week of the final sale, Germany had already lost $124 million in profits.
According to official reports, the German government’s Bitcoin wallet was holding BTC seized from a film pirating website crackdown that took place back in January 2024.
The governmental wallet has transferred out billions of dollars in Bitcoin since June 19, but it apparently intensified its moves at the start of July.