Ethereum
US government moves $12 million worth of ETH
In a notable move that caught the attention of the crypto community, the US government transferred a massive sum Ethereum (ETH) The transfer sparked speculation around a possible liquidation of ETH, which could mirror the downward trend suffered by Bitcoin (BTC) due to liquidations by the German and US governments. Additionally, the planned launch of Spot Ethereum ETFs this month further fuels these concerns.
US government changes Ethereum reserve
According to Arkham Secret Service, the US government recently transferred 3,375 Ethereum. This reserve, valued at approximately $11.75 million, was transferred Monday to an unidentified address. The timing of the transfer is particularly important because it precedes the expected approval of Spot Ether ETF’s S-1 filings.
Last week, the U.S. Securities and Exchange Commission (SEC) referred these filings to lead plaintiffs, including BlackRock, Fidelity and VanEck. Analysts therefore predict that the applicants could submit additional S-1 amendments this week. In the meantime, they have proposed a potential approval date of mid-July.
The movement of such a large amount of Ethereum ahead of these key events has sparked concerns that the US government may be preparing to capitalize on the news of the S-1 approval of the Ethereum ETF. If the government sells its Ethereum holdings, it could negatively influence the price of ETH, just as it did for Bitcoin.
The transferred funds are linked to assets seized by the US government from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin. Potapenko and Turogin were deceived by investors who promised them high returns on their cryptocurrency mining operations. These fraudulent activities led to the confiscation of significant crypto assets by authorities, including the transferred Ethereum.
This Ethereum transfer follows a similar pattern seen last week when the US government transferred 4,000 Bitcoins to exchanges in June. Repeated movements of seized crypto assets have led markets to speculate about impending dumpings, especially in light of the upcoming crisis. Ethereum ETF
decision.
Currently, the US government holds 50,524K Ethereum, worth a staggering $175.46 million. Meanwhile, the price of Ethereum has just climbed back above $3,400, but the trend could be affected by the latest transfer.
Read also : ETH Price Rises 5% Amid Increased Whale Activity Ahead of Ethereum ETF Approval
Bitcoin Dumping Issues
The June transfer of BTC by the US government caused widespread fear, uncertainty, and doubt (FUD) in the market. Additionally, on Friday, June 28, a notable transfer of 11.84 BTC was also recorded from the same government-held wallet.
As of today, the US government holds 213,534,000 bitcoins, valued at $13.41 billion. With speculation of an impending sell-off due to last Friday’s BTC transaction, analysts suggested the market was growing increasingly worried. Additionally, BTC sales from the German government have reinforced bearish sentiment in the market and among investors.
In the latest update, the German Government 400 BTC were transferred to exchanges such as Coinbase, Bitstamp, and Kraken. The transferred bitcoin is worth approximately $25.28 million. This again hints at an imminent sale by the German government just after the bitcoin price rebounded above $63,000.
Additionally, over the past two weeks, the address associated with the German government has transferred over 2,700 BTC to crypto exchanges. Therefore, market participants are concerned about a potential drop in the price of Bitcoin. Additionally, expectations for the July rebound are under threat.
Read also : Ethereum Network to Get Major Boost from SSF Roadmap, Says Vitalik Buterin