US government transfers nearly 20,000 BTC to Coinbase; is it really for selling?
According to on-chain data platform Arkham, the US government has transferred approximately 19,800 BTC (worth $1.92 billion) to Coinbase Prime, raising market concerns about a potential sell-off. However, this transfer may not necessarily be for selling assets. Here are a few key interpretations:
1️⃣ Possibly for custodial needs The US Department of Justice (DOJ) and Coinbase Prime established a partnership this July to "protect and trade" digital assets. This transfer may simply be an asset custody arrangement.
2️⃣ Lack of announcement regarding selling plans If the government plans to sell BTC, it usually makes this clear through legal documentation. According to court records, in March 2023, the US government sold 9,861 BTC for $216 million, and it was clearly planned to sell remaining assets in four installments throughout the year, but no new announcements have been seen.
Therefore, the market does not need to panic excessively; this transfer may not be a selling action. Investors can stay attentive but shouldn't be overly anxious.
BTC once dropped below $95,000
But coincidentally, shortly after the US government transferred a large amount of BTC, Bitcoin plummeted to around $94,388 at approximately 01:45 this morning. It has slightly rebounded before the deadline, now reported at $95,659, down 2.32% in the last 24 hours.
Does the US government transferring BTC always accompany market fluctuations?
Data shows that the US government transferred Bitcoin to Coinbase Prime three times this year, totaling 15,940 BTC. According to Lookonchain monitoring, BTC prices experienced about a 5% drop within three days after each transfer:
April: Transferred 2,000 BTC
Mid-June: Transferred 3,940 BTC
Mid-August: Transferred 10,000 BTC, the price fell on that day but then rebounded.
Whether this transfer will trigger similar fluctuations remains to be seen. Market sentiment and subsequent actions may be key factors.
Crossing the bear market, let's welcome the bull market! BTC is challenging $100,000; what about the future of inscriptions and altcoins?
Having endured the darkest moments, BTC is now making a push towards $100,000. This milestone is significant; I believe the bear market is over, the bull market is coming, and the breakthrough may happen this month. Here are my views:
1️⃣ Is there still a chance for inscriptions?
The pressure from the trapped positions during the boom of inscriptions is enormous, but I believe there is still an opportunity for another surge. However, this wave may be short-lived, similar to the rapid rise and fall of meme coins; consensus comes and goes quickly.
2️⃣ When will the altcoin season arrive?
The local altcoin season has already begun, and many altcoins have doubled. A true crazy market requires the second largest (ETH) to lead the charge; its ecosystem's chain effect is unmatched by other coins. I am very optimistic about the overall performance in Q1 of next year.
3️⃣ Will a major correction come?
There is a risk of a correction; Bitcoin may drop back to around $80,000 after breaking $100,000. But even in a correction, I would choose to hold firm; holding physical assets gives me more peace of mind.
The bear market is over, the bull market is here, and the future is promising!
Today's article ends here. Currently in a bull market, with winds and clouds swirling, we share passwords every day. If you're unsure how to navigate the bull market, feel free to follow us for strategies on spot trading in a bull market, which can be shared for free.
