Government Bitcoin Sales Weigh on Prices, Government Bitcoin Sales Impact Prices: Bitcoin prices face downward pressure as U.S. government Bitcoin sales contribute to increased supply and psychological caution. Despite early-day gains, Bitcoin’s technical outlook remains bearish, with further declines expected. Learn how market conditions and government sales weigh on cryptocurrency prices.
Market Overview
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The positive sentiment in stock markets has yet to spill over into cryptocurrencies due to selling
pressure. The Crypto Fear and Greed Index dropped two points to 27 (fear). Thursday’s active
recovery in stocks was met with Bitcoin and Ethereum sales, which at their lowest point on Thursday
approached $56K and $2500, respectively, following reports of new Bitcoin sales from U.S.
government wallets. Friday started positively, with the prices of these cryptocurrencies rising by more
than 2.5% since the beginning of the day.
Despite the early-day growth, the technical picture for Bitcoin remains bearish, with higher chances of
further price decline. A significant fundamental factor remains the sales from U.S. government wallets.
Besides the natural effect of increased supply in large blocks, the psychological effect must be
considered, causing buyers to wait for the end of the sell-off or speculate about the risks of regulatory
tightening.
News Background
As a result of the latest recalculation, the mining difficulty of the first cryptocurrency decreased by
4.19% to 86.87 T. The average hash rate for the period since the previous change was 740.3 EH/s.
Arkham recorded that U.S. authorities transferred 10,000 BTC ($580 million) to Coinbase from their
holdings of 203,239 BTC and other cryptocurrencies worth approximately $12.22 billion.
According to Ultrasound.money, the supply of Ethereum exceeded 120 million coins. This was
facilitated by the growth of coins locked in staking and restaking protocols. The annual inflation of
Ethereum increased to 0.69%.
Major mining company Marathon Digital announced the acquisition of 4,144 bitcoins worth $249
million. The total number of BTC in the company’s wallets now exceeds 25,000 coins.
K33 Research shows that Norway’s sovereign wealth fund increased its bitcoin portfolio from 1,507 to
2,446 bitcoins since the beginning of the year, using a risk diversification strategy.
According to Bitwise, based on SEC filings, 44% of asset managers increased their investments in
spot bitcoin ETFs in the second quarter, while another 22% maintained their previous position
volume. 21% of companies reduced their investments in BTC ETFs, and 13% liquidated them. During
this period, the value of BTC fell by 14.5%.
Bybit reports that the bullish trend of the first cryptocurrency should continue until the third quarter of
2025. The level of retail investor participation in the current cycle has decreased; institutional
investors are driving the growth of bitcoin prices.
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