https://thebitjournal.com/u-s-government-moves-bitcoin-is-a-major-sell-off-imminent/
Data from Arkham Intelligence reveals that on November 2, the government initiated the transfer of $1.92 billion in Bitcoin to two newly created wallets. One of these wallets later transferred $963 million worth of Bitcoin to Coinbase. Analysts interpret these actions as a possible precursor to the liquidation of a substantial portion of the government’s Bitcoin holdings.
This move is seen as controversial, as it comes amid ongoing debates about the U.S. establishing a federal Bitcoin reserve. Former President Donald Trump had proposed the idea during his campaign, aiming to utilize government-held Bitcoin to strengthen national reserves. However, recent actions by President Joe Biden’s administration have fueled speculation that the government may be aiming to reduce its Bitcoin holdings before Trump potentially assumes office.
Market Reaction and Price Impact
The announcement of these transfers has coincided with a dip in Bitcoin prices, sparking questions among investors. Historical data suggests that large-scale government sales can momentarily disrupt market prices, though recoveries are typically swift. Notably, a similar event earlier this year saw the government sell $600 million worth of Bitcoin, causing a brief dip followed by a sharp rebound fueled by institutional demand.
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