Investing.com – The report that the US government transferred approximately 3,940 BTC worth approximately $241 million to Coinbase (NASDAQ 🙂 has added a new element of pressure to the cryptocurrency market.
After gaining the authority to take action regarding the cryptocurrencies it had confiscated, the US government continues to transfer cryptocurrencies to exchanges. In April, the government had previously contributed to a market crash by transferring a larger amount of Bitcoin worth $2 billion. While such actions are considered part of the United States' intervention in the cryptocurrency market, some believe that the government is making strategic moves to reduce its holdings of crypto assets.
The US government owns a large amount of BTC
According to Lookonchain data, the US government currently holds approximately 213.46 BTC worth around $13.07 billion. The United States holds the largest amount of Bitcoin among governments. Globally, approximately 2.7% of Bitcoin in circulation is held by governments, primarily those of the US, China, the UK, Germany and El Salvador. Meanwhile, this US move follows transactions by the German government, which has been transferring Bitcoin to crypto exchanges since last week.
The bearish trend in the Bitcoin market has intensified in recent days with sales by government institutions. However, many market experts attribute the main reason for Bitcoin's decline to miners' sales.
Although Bitcoin's pullback is believed to be largely due to miner sales, the United States continues to create anxiety in the market with its large amount of BTC holdings. Market speculation is developing around the idea that the US has the potential to run the market with its Bitcoin reserves, emphasizing that such crypto transfers can create a larger impact with panic selling in the market than with the quantity sold.
Current Bitcoin Situation
After closing yesterday with a drop of around 1.5% below $61,000, Bitcoin saw an acceleration in buying, especially towards today's US trading hours. The largest cryptocurrency is currently recovering from yesterday's losses and moving towards $62,000.
