Bitcoin transfer by the U.S. government to Coinbase sparks market speculation By Investing.com

Investing.com – The report that the US government transferred approximately 3,940 BTC worth around $241 million to Coinbase (NASDAQ:) has added a new pressure element to the crypto market.

After gaining the authority to take action regarding the it had seized, the US government continues to transfer cryptocurrencies to exchanges. In April, the government had previously contributed to a market decline by transferring a larger amount of Bitcoin worth $2 billion. While such actions are seen as part of the US’s intervention in the crypto market, some believe that the government is making strategic moves to reduce its holdings of crypto assets.

US government holds a large amount of BTC

According to Lookonchain data, the US government currently holds approximately 213,46 BTC worth around $13.07 billion. The US holds the most Bitcoin among governments. Globally, approximately 2.7% of the circulating Bitcoin is held by governments, primarily the US, China, the United Kingdom, Germany, and El Salvador. Meanwhile, this move by the US follows the transactions of the German government, which has been transferring Bitcoin to crypto exchanges since last week.

The downtrend in the Bitcoin market has intensified in recent days with the sales from government institutions. However, many market experts attribute the main reason for the Bitcoin decline to miner sales.

Although the pullback in Bitcoin is largely thought to be due to miner sales, the US continues to create market anxiety with its large amount of BTC holdings. Speculations in the market are developing around the idea that the US has the potential to manage the market with its Bitcoin reserves, and it is emphasized that such crypto transfers can create a greater impact with panic selling in the market rather than the amount sold.

Current situation of Bitcoin

After closing the day yesterday with a drop of around 1.5% below $61,000, Bitcoin saw accelerated buying, especially towards US trading hours today. The largest cryptocurrency is currently recovering yesterday’s losses and moving towards $62,000.