Cryptocurrencies

The price of Bitcoin (BTC) returned to $61,000 on June 26 as details of a massive sell-off emerged.

The price of Bitcoin (BTC) returned to $61,000 on June 26 as details of an incoming sale of Bitcoin by the US government were revealed.

BTC/USD one hour chart. Source: Commercial View

BTC Price Faces New Risks From Government Selloff

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is struggling to maintain the previous day’s gains after Wall Street opened.

The uncertain price behavior of BTC came as news spread that coins from a wallet known to belong to the American institution were sent to the Coinbase exchange.

According to data from cryptocurrency intelligence firm Arkham, participants totaled 3,940 Bitcoins ($240 million).

“There are generally two options here,” popular trader Skew wrote in a reaction on X (formerly Twitter).

“- OTC desks can auction BTC to clients (off-market buyers) – open market auctions (sold over time in the market).”

Bitcoin market data. Source: Deviation/X

Skew later said the market reaction had been relatively weak.

He commented on the current order book situation, saying: “Some short trades are opened in anticipation that supply will hit the market, but otherwise long trades are mostly closed. »

The US government wallet still contains over 213,500 Bitcoins ($13 billion) at the time of writing.

The move comes on top of a similar move by Germany, which the previous week transferred 6,500 bitcoins from its wallet. 900 bitcoins were sold on June 25, Cointelegraph reported.

The timing of the selloff did not escape the attention of market observers, with Travis Kling, head of cryptocurrency hedge fund Ikigai, calling it “interesting.”

Source: Travis Kling

“Why are so many governments selling their Bitcoin? “It’s starting to look coordinated…” added cryptocurrency entrepreneur Vinny Lingham.

William Clementi, co-founder of cryptocurrency research firm Reflexivity, suggested that widespread distribution by Bitcoin whales in recent weeks could have occurred taking into account the measures taken by the government.

“I think a lot of the recent selling over the last few weeks is due to headline-grabbing whales explaining the relative weakness of cryptocurrencies versus stocks,” he told X subscribers .

“I hope I don’t speak too soon, but if Germany, the United States and Gox all sell by telegraph, who is going to buy on the other end of the line?

Bitcoin ETFs Break 7-Day Losing Streak

A quick look at the latest US institutional flows showed that June 25 ended with a slight increase in Bitcoin exchange-traded funds (ETFs).

Related: Bitcoin Price Needs June End Above $56.5K to Defend Upside – Analysis

These managed to attract $31 million, marking the first total day of inflows since June 12, according to data from sources including UK-based investment firm Farside Investors.

Net flows of US Bitcoin ETFs (screenshot). Source: Farside Investors

Popular trader Daan Crypto Trades anticipated the positive result the day before, highlighting the time-weighted average price, or TWAP, he made a purchase on Coinbase.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

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