The US government recently sold 29,799 BTC on July 29, 2024, causing a sharp price drop of over 24%. Massive government sales often create significant selling pressure in the market.

Transferring large amounts of Bitcoin to exchanges, such as Coinbase Prime, often signals an intention to sell, which can trigger bearish sentiment among market participants.

Despite this, optimism towards Bitcoin remains. Many analysts believe that this short-term volatility will not hinder BTC's long-term potential as a leading digital asset.