US Government Transfers $2 Billion in Bitcoin, Market Turmoil Ensues
On Monday, July 29, there were reports that the US government had transferred $2 billion worth of Bitcoin to newly generated digital addresses, causing a 2.12% drop in the cryptocurrency’s value. Bitcoin closed at $66,810 after hitting an intraday high of $69,916 before news of the transfer broke, resulting in a low of $66,429.
Arkham Intelligence Reveals Details of $2 Billion Bitcoin Transfer
Arkham Intelligence provided detailed analysis of the $2 billion Bitcoin transfer, disclosing that the funds were split evenly between two addresses. One address held 10,000 BTC valued at $669 million, while the other contained 19,800 BTC worth $1.333 billion. The market response highlighted the importance of President Donald Trump’s recent statements at the Bitcoin 2024 conference regarding U.S. cryptocurrency holdings.
Market Trends and Potential Impact on Bitcoin Price Stability
The U.S. Bitcoin spot ETF market experienced a significant net capital outflow on July 29, with withdrawals from key sources totaling $81.5 million. This included withdrawals from Grayscale Bitcoin Trust, Bitwise Bitcoin ETF, and Fidelity Wise Origin Bitcoin Fund. As of July 30, the U.S. government held 183,493 Bitcoins valued at approximately $12.16 billion. Factors such as Mt. Gox updates, ETF flows, and political developments could influence Bitcoin demand and price stability.
Transitioning to the technical analysis of Bitcoin, the cryptocurrency is displaying signs of strength against its oscillators on compressed charts. Traders are advised to monitor the $65,800 level, as a firm hold could pave the way for a potential rebound to $67,400 or even $68,100. The sustainability of this support will heavily depend on prevailing market sentiment, with validation at these levels indicating a bullish momentum that could extend over the coming weeks.
