Did US Government’s $240M In BTC Transfer Exacerbate Bears?

• Bitcoin price pressured by government sales amid bearish market sentiment.
• The US Government holds 1.6% of the total BTC supply.

While the leading cryptocurrency, Bitcoin, faces a dip—hitting an 8-week low just two days ago and struggling to surge past $62K—developed countries’ governments are making major Bitcoin moves. Notably, the German government transferred $271 million worth of BTC last week at an average price of $63,828.

More significantly, the U.S. Government moved another 3,940 BTC ($241M) to Coinbase Prime just hours ago. According to SpotOnChain, their last move involved sending 2,000 BTC ($131M) to Coinbase Prime on April 3, 2024.

While these actions have caused speculation, the crypto sleuth ZachXBT posted his investigation, stating that the funds were part of the reclaimed Bitcoin from the “Silk Road hack.” After the infamous darknet marketplace shutdown in 2013, the Justice Department tracked down the hacker and seized 50,676 BTC, which the government has been selling off in batches ever since.

Are Governments Backing Bitcoin Bears?

Currently, the U.S. Government holds around 213.5K BTC ($13B), making it the largest BTC holder among all world governments, representing almost 1.3% of the total Bitcoin supply. The German Government holds 4,250 BTC worth $2.8 billion and recently transferred another 750 BTC ($46.27M).

These movements have undoubtedly impacted Bitcoin’s price, contributing to selling pressure in recent days. The daily RSI is at 31, indicating bearish conditions. The 9-day EMA is at $62,618, while the current price is $60,950, further confirming the bearish trend.

Bitcoin faces resistance at the $63,144 mark, with another resistance level at $65,135. Support lies at $58,514.

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