How Will the Latest US Move Affect Bitcoin?
Amid discussions about creating a cryptocurrency reserve fund, the US government has moved $1.92 billion in Bitcoin. Arkham Intelligence data reports that the US Bitcoin has been moved to new wallet addresses. Specifically, the funds have been split into two wallets, containing $969 million and $949 million in BTC.
According to data from Arkham Intelligence, the United States still holds over 18 billion USD in Bitcoin. This move was reported as President-elect Donald Trump is expected to make progress on a bill to establish a Bitcoin reserve fund early in his second term as President of the United States.
According to some analysts, the movement of BTC by the United States will not affect the Bitcoin market because the United States certainly has no intention of selling BTC; this movement may simply be for security.
In his re-election campaign, Trump promised not to sell any of the country's Bitcoin holdings. Senator Cynthia Lummis has introduced the BITCOIN Act to establish a Bitcoin reserve fund this year.
Not only in the United States, but Poland has also seen a presidential candidate promising to create a similar Bitcoin reserve fund, while the Brazilian Congress is also looking to establish its own sovereign BTC reserve fund.
The year 2024 is clearly the “game-changing year for Bitcoin” with the price rising to 99,000 USD; the king coin has proven to be the leader of the Crypto market and has performed well throughout the year, but certainly, BTC's upward momentum will only be strong when Donald Trump returns to the White House.
According to Coingecko, BTC has increased by over 40% in the past 30 days. The coin faced a slight correction of 1.5% yesterday, trading at around 96,000 USD, down from an all-time high of 99,000 USD reached at the end of last month.
Is the recent price drop a cause for concern?
Speaking about the recent correction of Bitcoin, Ryan Lee, an analyst at Bitget Research, shared: “After Bitcoin's recent surge to nearly 100,000 USD, the market may be correcting, and the profit-taking behavior of investors may also be one of the reasons for the BTC price adjustment. In addition, long positions worth billions of USD face liquidation risks, which may also cause the market to decline.”
According to Ryan Lee, the recent correction of Bitcoin is normal, so investors need not worry; the price will quickly recover.
“The recent correction primarily stems from the profit-taking behavior of American investors ahead of the upcoming holiday. Additionally, the Bitcoin bulls are also facing significant resistance at 100,000 USD,” he added.
The significant resistance encountered, profit-taking behavior of investors, or MicroStrategy's Bitcoin purchases... all of these are signals that “the market may undergo a short-term correction,” but the long-term trend remains positive.
$BTC $ETH $SOL