The U.S. Government made another sizable crypto move on Tuesday, October 14, transferring 667.6 Bitcoin (BTC), worth nearly $75 million, to two new addresses, according to data Finbold retrieved from Arkham.
As historical data suggests transfers such as this often precede sales, the market is speculating that the U.S Government address might soon start dumping the crypto.
What’s more, the move comes just days after the president’s exposure to Bitcoin was estimated to be around $870 million and mere hours before Federal Reserve Chair Jerome Powell’s speech at 4:20 PM (UTC).
Bitcoin falls to $110,000
Further adding to the speculation, the alleged insider whale responsible for the flash crash last Friday has ramped up his short position to over $500 million, anticipating further market declines.
In the meantime, rumors of a potential $1 billion dump by BlackRock started circulating, although a closer look at the data revealed a far more nuanced picture, with transfers mostly tied to creations, redemptions, and internal reallocation.
Currently, the government holds over 197,000 BTC worth nearly $22 billion. Bitcoin’s daily trading volume also slumped nearly 20%, suggesting that traders are increasingly more cautious ahead of the Fed rate cut guidance, with BTC down around 3%, sinking as low as $110,000.
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