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US Government Moves $12 Million in ETH
In a noteworthy move that has caught the attention of the cryptocurrency community, the United States government has transferred a huge amount Ethereum (ETH) reserve on Monday, July 1. The move has sparked speculation about a potential ETH sell-off, which could mirror the downtrend Bitcoin (BTC) has experienced amid the sell-offs by the German and US governments. Additionally, the planned launch of the Spot Ethereum ETF this month is further fueling such concerns.
US Government Moves Ethereum Reserve
Second Arkham IntelligenceThe U.S. government recently transferred 3,375 Ethereum. This stash, valued at approximately $11.75 million, was moved to an unidentified address on Monday. The timing of the transfer is especially significant as it precedes the expected approval of the Spot Ether ETF’s S-1 filings.
Last week, the U.S. Securities and Exchange Commission (SEC) returned these filings to major applicants, including BlackRock, Fidelity, and VanEck. As such, analysts expect applicants to file additional S-1 amendments this week. In the meantime, they have offered a potential approval date of mid-July.
The movement of such a substantial amount of Ethereum before these key events has led to concerns that the U.S. government may be preparing to capitalize on the news of the approval of the Ethereum S-1 ETF. If the government were to sell its Ethereum holdings, it could negatively impact the price of ETH just as it has with Bitcoin.
The transferred funds are linked to assets seized by the US government from Estonian cryptocurrency entrepreneurs Sergei Potapenko and Ivan Turogin. Potapenko and Turogin were deceived by investors with promises of high returns from their cryptocurrency mining operations. The fraudulent activities led to the confiscation of major cryptocurrencies by authorities, including Ethereum, which was moved.
This Ethereum transfer follows a similar pattern seen last week when the U.S. government moved 4,000 Bitcoin to exchanges in June. Repeated movements of seized cryptocurrencies have led to market speculation of impending dumps, especially in light of the impending Ethereum ETFs
decision.
Currently, the US government holds 50,524K Ethereum worth a staggering $175.46 million. Meanwhile, the price of Ethereum has just recovered above $3,400, but the trend may be affected by the latest transfer.
Read also: ETH Price Up 5% Amid Increased Whale Activity Ahead of Ethereum ETF Approval
Concerns about Bitcoin Dump
The June transfer of BTC by the US government has caused widespread fear, uncertainty and doubt (FUD) in the market. Furthermore, on Friday, June 28, a notable transfer of 11.84 BTC from the same government-held wallet was also recorded.
So far, the US government holds 213,534K Bitcoin, worth a whopping $13.41 billion. With speculations of an impending sell-off due to last Friday’s BTC transaction, analysts have hinted at increased FUD in the market. Additionally, the German government’s BTC sell-off has contributed to bearish sentiment in the market and among investors.
In the latest update, the German government moved 400 BTC to exchanges including Coinbase, Bitstamp, and Kraken. The Bitcoin moved is worth about $25.28 million. This again suggests an impending sell-off by the German government soon after the price of Bitcoin bounced above $63,000.
Furthermore, over the past two weeks, the address associated with the German government has transferred over 2,700 BTC to cryptocurrency exchanges. Hence, market participants are concerned about a potential drop in the price of Bitcoin. Furthermore, the expectations of a July rebound are in jeopardy.
Read also: Ethereum Network to Get Major Boost with SSF Roadmap, Says Vitalik Buterin