[US government transfers $12 million in Ethereum, is a Bitcoin-style sell-off coming? 】
The U.S. government made a massive Ethereum (ETH) transfer on July 1, fueling speculation about a potential massive ETH sell-off. The U.S. government recently transferred 3,375 Ethereum, worth approximately $11.75 million, to an undisclosed address, according to data from Arkham Intelligence. The timing of this move is particularly important as it occurs ahead of the expected approval of the Spot Ethereum ETF S-1 filing.
Last week, the U.S. Securities and Exchange Commission (SEC) returned applications from leading applicants including BlackRock, Fidelity and VanEck, and analysts expect further amendments may be filed this week and approval could come in mid-July. . The massive transfer of Ethereum has raised concerns that the U.S. government may be preparing to cash out on news of the Ethereum ETF S-1 approval. If the government sells its Ethereum holdings, it could have an adverse impact on the ETH price, as was the case before with Bitcoin.
This Ethereum transfer follows a similar pattern to last week’s Bitcoin transfer, when the U.S. government moved 4,000 Bitcoin to exchanges in June. The repeated movement of these seized crypto assets has led to market speculation of an imminent sell-off, especially ahead of the upcoming Ethereum ETF decision.
Currently, the U.S. government holds 50,524 Ethereum, worth approximately $175.46 million. Another 213,534 Bitcoins are held, worth approximately $13.41 billion. Fear increased in the market due to last Friday’s Bitcoin trading. In addition, the German government’s Bitcoin sell-off also added to the bearish sentiment in the market and investors.
The German government recently transferred 400 Bitcoins worth approximately $25.28 million to exchanges including Coinbase, Bitstamp, and Kraken. This once again hints at an imminent sell-off from the German government, just after Bitcoin prices recovered above $63,000. In addition, addresses linked to the German government have moved more than 2,700 Bitcoins to crypto exchanges in the past two weeks, and market participants are worried that Bitcoin prices may fall further, threatening July’s expected rebound.
