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BTC Slides as US Government-Related Selling Pressure Looms
Bitcoin has been growing slowly towards $66,000, erasing all of last week’s gains, with sentiment dented as a significant amount of assets were transferred from e-wallets linked to the US government, raising concerns about impending selling pressure among traders. BTC has fallen as much as 5% before recovering slightly over the past 24 hours as the US Marshals Service moved $2 billion worth of BTC to two new wallets. Tracking service Arkham estimated that at least one of the wallets was likely a custodial service. Bitcoin was trading around $66,550 at press time, down 4.3% from 24 hours ago. The broader cryptocurrency market, as measured by the CoinDesk 20 Index, is down 3.5%.
Spot Ether ETFs have seen negative net flows in their first week due to massive outflows from the incumbent Grayscale Ethereum Trust (ETHE) has sparked overwhelming interest in competing products. Equivalent bitcoin funds, which debuted in January, have raked in $1 billion in net inflows in their first four days, even as they suffered significant outflows from a previously existing Grayscale fund. Overall, spot ETH ETFs have lost $340 million in net outflows with more than $1.5 billion leaving the Grayscale Trust, according to Farside Investors. Ether has outperformed the broader digital asset market after Monday’s decline. ETH is trading at $3,330, down 1.67% versus CD20’s 3.5%.
Donald Trump’s Cryptocurrency Promises It could mean that the short-term price of bitcoin is tied to the likely outcome of the November presidential election.investment bank Jefferies said. Trump vowed to maintain a strategic reserve of bitcoin and never sell government-seized bitcoin (BTC) at BTC 2024 in Nashville on Saturday. “His overtures to the industry to install crypto-friendly regulators could have the effect of tying the price of BTC in the near term to the outcome of the U.S. presidential election,” analysts Jonathan Petersen and Joe Dickstein wrote. Jefferies notes that Trump has pledged to select crypto-friendly regulators, create a presidential cryptocurrency industry advisory council, and make the country the “crypto capital of the planet.”