- The U.S. government has moved billions in Bitcoin.
- BTCโs price seemed to have taken a hit following the development.
- The crypto asset was on its way to cross the $70,000 level.
The U.S. government appeared to have moved billions in Bitcoin on Monday, triggering the crypto assetโs price to tank further after flirting briefly with the psychologically significant $70,000 resistance level.
On July 29, the worldโs largest crypto asset by market cap made an impressive gain of over 2.7% to exchange hands at $69,974 at about 4:05 PM (UTC+3). While the price started retreating to hover around $68,000 for over two hours, things took a dramatic turn after the market learned about the massive Bitcoin movement.
U.S. DOJ Moves $2B in Bitcoin
Per Arkham Intelligence data, a wallet tagged as belonging to the U.S. government transferred 29,800 BTC to an unmarked address with no prior history of transactions. The shifted Bitcoin, valued at over $2 billion, is tied to the funds the Department of Justice (DOJ) confiscated from Silk Road.
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The development likely rattled the market because previous movements of the original cryptocurrency by governments often foreshadowed impending asset sales and price falls.
On July 5, Bitcoin hit its lowest level since February to trade at $53,717 following weeks of Germany disposing of hundreds of millions of dollars worth of the crypto asset. The German governmentโs selling spree cooled off a week later, and Bitcoin seemed to retrace its footing as bearish trends weakened.
While the U.S. government hasnโt conveyed intentions to sell the moved Bitcoin, Arkham reported that the $2 billion had been split into two addresses, with 10,000 BTC deposited to an institutional custody service.
CoinMarketCap data shows that Bitcoin had seen an intraday decline of 1.27% to trade at $67,367 as of press time.
Read how a German MP advocated for Bitcoin amid the governmentโs sale-off:
German MP Champions Bitcoin Strategy Amid Sell-Off Mess
Stay updated on what drove Bitcoinโs price toward the $70K level:
Bitcoin Flirts with $70K as Upward Streak Draws On
