The US government has been transferring significant amounts of Bitcoin, raising concerns about potential market dumps. Recently, they moved 11.84 BTC to a new address, which is speculated to be a test before a larger transfer. This follows a previous transfer of 4,000 BTC to Coinbase Prime, which coincided with a drop in Bitcoin's price.
The government's actions have fueled FUD (fear, uncertainty, and doubt) in the market, especially as Germany is also actively selling its Bitcoin holdings. However, analysts like CryptoQuant CEO Ki Young Ju have tried to calm fears, stating that the recent sales are unlikely to significantly impact the market due to Coinbase Prime's capacity to handle large liquidity.
Despite this, dormant Bitcoin whales have also been offloading their holdings, contributing to the overall market anxiety. It remains to be seen whether these government transfers will lead to a market crash or if other factors will overshadow their impact.
Key Points:
The US government transferred 11.84 BTC, sparking concerns about a potential market dump.
This follows a previous transfer of 4,000 BTC to Coinbase Prime, which coincided with a drop in Bitcoin's price.
Analysts believe the recent sales are unlikely to significantly impact the market due to Coinbase Prime's capacity to handle large liquidity.
However, dormant Bitcoin whales have also been offloading their holdings, adding to market anxiety.
The overall impact of government transfers remains uncertain.
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