US Government Transfers $2 Billion in Bitcoin, Market Reacts
On Monday, July 29, reports emerged about the US government transferring $2 billion worth of Bitcoin to newly generated digital addresses. This move sent Bitcoin prices down by 2.12%, with the cryptocurrency closing at $66,810 after hitting an intraday high of $69,916 earlier in the day. The market reacted negatively to the news, causing Bitcoin to plummet to an intraday low of $66,429. Arkham Intelligence provided detailed analysis of the $2 billion transfer, revealing the distribution of funds between two addresses, highlighting the significance of President Donald Trump’s assurances at the Bitcoin 2024 conference.
Market Fluctuations and Government Holdings
Following the government’s transfer, the US Bitcoin spot ETF market experienced a significant net capital outflow of $81.5 million, part of a broader trend totaling $17.5 billion. Withdrawals were noted from major funds such as the Grayscale Bitcoin Trust, Bitwise Bitcoin ETF, and Fidelity Wise Origin Bitcoin Fund. As of July 30, the US government held 183,493 Bitcoins valued at approximately $12.16 billion, while Mt. Gox retained 80,128 Bitcoins estimated at $5.31 billion. Various factors like Mt. Gox updates, ETF flows, and political developments continue to impact Bitcoin demand and price stability.
Technical Analysis and Price Predictions
Despite the market turmoil, technical indicators suggest a potential rebound for Bitcoin. Analyses show bullish divergence against the RSI on lower time frames and a buy signal from the TD sequence. Maintaining the $65,800 level could lead to a retest of $67,400 or even $68,100, depending on market sentiment. Traders and investors are advised to monitor price reactions at these levels to confirm bullish momentum that could last for several weeks, amidst ongoing volatility.
