- The US Government transferred 3,940.28 BTC, valued at $241.22 million, to Coinbase Prime.
- The German Government transferred another 750 BTC, valued at $46.35 million, on Wednesday.
- On-chain data shows that the miners' selling activity is increasing, signaling bearish momentum.
Bitcoin (BTC) encountered resistance near the $62,000 mark on Wednesday and declined 1.5% to trade around $60,777 in Thursday’s American session. The US and German governments' transfers of BTC to exchanges in the past week have contributed to market FUD (Fear, Uncertainty, Doubt) among traders. Additionally, on-chain data reveals a rise in miners' selling activity, suggesting bearish sentiment in the market.
Daily digest market movers: Bitcoin price eases as US and German Authorities transfer BTC to exchanges
- Data from Arkham Intelligence shows that the US Government transferred 3,940.28 BTC, valued at $241.22 million, to Coinbase Prime Deposit on Wednesday. This Bitcoin was initially seized from narcotics trafficker Banmeet Singh and forfeited during a trial in January 2024. This sudden movement of funds could have sparked FUD (Fear, Uncertainty, Doubt) among traders, potentially influencing Bitcoin's 1.5% price decline on Wednesday.
Update: US Government Sends $240M BTC to Coinbase Prime
— Arkham (@ArkhamIntel) June 26, 2024
The US Government just moved 3,940 BTC ($240M) to Coinbase Prime.
This BTC was originally seized from narcotics trafficker Banmeet Singh, and forfeited at trial in January 2024.
Transaction: https://t.co/hZ1CwqWCmF pic.twitter.com/9t6k8Wdizq
- According to data from Lookonchain, the German Government transferred 750 BTC, valued at $46.35 million, on Wednesday. Additionally, a smaller transfer of 0.001 BTC to Flow Traders suggests a possible test transaction or intention to sell BTC through that entity. Recent movements indicate that German authorities have transferred a total of 2,100 BTC, amounting to $135.22 million, to platforms including Coinbase, Bitstamp, and Kraken over the past few days. The German Government currently holds 45,609 BTC, valued at $2.81 billion.
The German Government transferred 750 $BTC($46.35M) out again, of which 250 $BTC($15.41M) was transferred to #Bitstamp and #Kraken.
— Lookonchain (@lookonchain) June 26, 2024
German Government currently holds 45,609 $BTC($2.81B).
The German Government also transferred 0.001 $BTC to Flow Traders, which may be a test… pic.twitter.com/F0CFUDPQoP
- Strike, a company specializing in Bitcoin payments, announced via its Twitter account that it is entering the United Kingdom market. This expansion enables individuals and businesses in the UK to utilize Strike's services related to Bitcoin and the Lightning Network. With this step, Strike's services are now accessible in 100 countries and regions worldwide, encompassing the US, Europe, Latin America, and Africa. Given the UK's status as the second-largest economy in Europe and the sixth-largest globally, this move presents substantial prospects for increasing Bitcoin adoption.
Announcing Strike UK
— Strike UK (@strikebtc_uk) June 25, 2024
Today, we're launching Strike UK, expanding our full suite of Bitcoin services to all eligible customers in the UK
Buy #bitcoin, free on-chain withdrawals, a full-featured Lightning wallet and more. Get the best of #Bitcoin with @Strike
Wen UK? Now … pic.twitter.com/anVV3brJAR
- According to CryptoQuant data, the Bitcoin Miner to Exchange Flow (Total) metric shows the total amount of BTC transferred from a mining pool to exchange wallets. Increases in the metric indicate that many miners' coins are exposed to selling, suggesting a bearish trend, and decreases indicate that only a few miners' coins are exposed to selling, signaling less sell pressure.
- In the last three days, the miners have sent their BTC to the exchanges at an average daily rate of 8,702.18 BTC. This transfer could include the immediate need to cover the cost or to gain excess gains by selling at the price they consider to be overvalued. Both cases are correlated to sell action, which naturally leads to interpreting this reason as a price drop, which indicates a bearish sign.
Bitcoin Miner to Exchange Flow (Total) chart
Technical analysis: BTC faces resistance at the lower band of the descending wedge
Bitcoin's price broke below the descending wedge on Monday, declining approximately 7.5% to retest its crucial weekly support near $58,375 and rebounded by 5.8% on Tuesday.
BTC was rejected by the lower band of the broken descending wedge on Wednesday. Since then, it has edged down approximately 1.75% to trade around $60,777.
If the lower boundary of the descending wedge around $62,000 holds as resistance, BTC could decline roughly 4% to reach its weekly support near $58,375.
On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are below their respective mean levels of 50 and zero. This indicates that, according to these momentum indicators, the bearish sentiment prevails, suggesting the potential for further decline in BTC’s price.
BTC/USDT daily chart
However, if BTC closes above the $63,956 level and forms a higher high in the daily time frame, it could indicate that bullish sentiment persists. Such a development may trigger a 5% rise in Bitcoin's price, revisiting its next weekly resistance at $67,147.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone
Since Donald Trump’s victory on November 5, Dogecoin has emerged as the best performing asset among the top 10 ranked cryptocurrencies. On November 12, DOGE reached a new milestone price propelled by Trump’s statement confirming Elon Musk’s involvement in the incoming administration.
Ethereum Price Forecast: ETH's declining supply could fuel bullish pressure toward $3,732
Ethereum is trading near $3,220, down 2.5% on Wednesday after its supply began trending downward. The declining supply could fuel bullish pressure for the top altcoin, especially as institutional demand for ETH ETFs is also rising.
PEPE hits new all-time high, rallies nearly 50% following Robinhood and Coinbase listing
PEPE rallied over 50% on Wednesday and hit a new all-time high after crypto exchanges Robinhood and Coinbase announced they would list the meme coin on their respective trading platforms.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.