Impact of US Government’s $2 Billion Bitcoin Transfer
On Monday, July 29, reports surfaced regarding the US government’s transfer of $2 billion worth of Bitcoin to new digital addresses. This news caused Bitcoin to drop by 2.12%, closing the session at $66,810 after reaching an intraday high of $69,916. The market reaction highlighted the importance of President Trump’s pledge to maintain US cryptocurrency holdings at the Bitcoin 2024 conference.
Market Response and Analysis
Arkham Intelligence detailed the $2 billion transfer, revealing that the funds were evenly split between two addresses. One address held 10,000 BTC valued at $669 million, while the other contained 19,800 BTC worth $1.333 billion. The US Bitcoin spot ETF market experienced significant net capital outflows, contributing to a broader trend. Factors such as Mt. Gox updates, ETF flows, and political developments could impact Bitcoin demand and price stability.
Technical Analysis and Price Forecast
Despite the market turmoil, Bitcoin is displaying strength on compressed charts, offering hope for a potential rebound. Maintaining the $65,800 level could lead to tests at $67,400 or even $68,100. Traders and investors should monitor price reactions at these levels, as confirmation could signal bullish momentum lasting for weeks.
