3 reasons why Bitcoin (BTC) is up today
Weak tech corporate earnings, spot Bitcoin ETF inflows and the potential arrival of a new major investor drove Bitcoin price above $63,000.
Bitcoin (BTC) rose by 4.5% from June 28 to July 1, breaking the $63,000 resistance for the first time in a week. The prior decline was largely due to fears stirred by the German government’s BTC transactions with exchanges and worries about Mt. Gox creditors selling large amounts of Bitcoin during the bankruptcy proceedings. However, this bearish trend was reversed by three key factors, including the entry of a possible new major investor into the market.
On July 1, the German government moved 1,500 BTC, valued at $95 million, to various cryptocurrency exchanges, as reported by the onchain analytics firm Arkham Intelligence. On a similar note, the United States government transferred 1,184 BTC on June 30 from a wallet linked to previously confiscated funds. As of now, the German government possesses Bitcoin assets worth $2.8 billion, primarily acquired from a defunct movie piracy site closed in 2013.
These transactions fueled speculation that the selling pressure might persist, as the U.S. government’s wallet also holds Bitcoin valued at $13.4 billion, according to data from Arkham Intelligence. The most significant recent transaction by the U.S. government occurred on June 26, when it sent 3,940 BTC, worth $214 million at that time, to a Coinbase Prime account. These funds were confiscated from Banmeet Singh, a convicted drug trafficker, earlier in 2024.
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Author: Marcel Pechman
