While the leading cryptocurrency Bitcoin has been trading sideways in recent days, new developments in the markets have increased selling pressure. The price of BTC has fallen to levels around $84,000.
At this point, activity in US government-linked wallets and tensions around the Strait of Hormuz, which pushed oil prices above $100, put pressure on global risk appetite and increased selling pressure on Bitcoin, causing a sudden drop in price.
This sudden drop led to liquidations of approximately $550 million in the crypto market within hours; the majority of losses came from long positions.
$101 Million Worth of Crypto Transferred from US Government-Linked Wallets!
A noticeable surge in cryptocurrency wallets linked to the US government has been observed. According to the on-chain tracking platform Lookonchain, Bitcoin and BNB totaling approximately $103 million were transferred from government-linked addresses.
At this point, the US government completed Bitcoin transfers exceeding $70 million last night and BNB transfers this morning.
Bitcoin accounted for the largest portion of the transfers. A US-linked address sent 833.6 BTC, worth approximately $71 million, to Coinbase Prime.
During the same process, approximately 40,285 BNB, worth about $31.63 million, were also transferred. Unlike Bitcoin, BNB was sent to an unknown address after multiple transfers.
The wallets still contain approximately $27.5 billion worth of cryptocurrencies.
Is a Bitcoin Sell Coming?
While the transfer to Coinbase Prime has raised questions about a possible sale in the market, current data does not indicate that such a sale occurred. Furthermore, the transfer alone does not mean the Bitcoins were sold. The platform offers asset management services to institutional investors, in addition to custody and transaction services. Therefore, to determine whether a sale took place, the subsequent movements of the BTC in question need to be monitored.
What’s the Latest Situation with Bitcoin?
With these developments increasing selling pressure on Bitcoin, analysts are pointing to the $83,000 level.
Speaking to CoinDesk, Vikram Subburaj, CEO of the cryptocurrency exchange Giottus, stated that it is important for Bitcoin to remain above the $83,000 level. According to Subburaj, maintaining this level means that selling pressure is not yet strong enough to pull Bitcoin back down to the $76,000-$81,500 range. However, if Bitcoin remains permanently below the $82,000-$83,000 levels, it could increase downside risks. In such a scenario, Subburaj indicated that the price could fall to the $80,000-$81,500 range.
Alex Kuptsikevich, chief market analyst at FxPro, considers $84,000 a significant support level for Bitcoin. According to the analyst, a drop below this level could lead to increased selling pressure and pull the price down towards $80,000.
*This is not investment advice.
