Bitcoin

Silk Road

Gold

Amidst waves of concern surrounding the sale of Bitcoin by the US and German governments, industry experts have come forward to dispel fears, suggesting that these moves could be bullish for the market. 
Yesterday, the Bitcoin sector experienced heightened volatility following actions by two major governments. The German Federal Criminal Police (BKA) <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-selloff-german-govt-another-67-million/" target="_blank" rel="noopener ">continued with its sales</a> of Bitcoin, reducing its holdings from 50,000 BTC to 45,264 BTC. Concurrently, the US government transferred 4,000 BTC to Coinbase, likely aiming for liquidation, retaining a substantial 213,546 BTC in its reserves. 
<h2 id="why-this-is-bullish-for-bitcoin-long-term">Why This Is Bullish For Bitcoin (Long-Term)</h2> 
Travis Kling, founder of Ikigai Asset Management, remarked on the synchronicity of these events. “All at the same time—US Govt selling seized Silk Road Bitcoin, US Govt selling seized Banmeet Singh BTC, German Govt selling seized Movie2k BTC, Mt Gox distributing BTC after a decade. Interesting… I can’t help but look at all these actions and wonder about some kind of coordination/underlying intention,” Kling <a href="https://x.com/Travis_Kling/status/1806016594264686780" target="_blank" rel="noopener nofollow">stated</a> via X. 
Despite concerns that these sales could pressure Bitcoin prices, experts argue that the impact on the market is likely minimal. Ki Young Ju, CEO of CryptoQuant, countered the prevalent fear, uncertainty, and doubt (FUD). He noted, “US gov’t sold 4K Bitcoin today, but it’s less likely to impact the market. Coinbase Prime handled 20-49K BTC in sell-side liquidity daily during high <a href="https://www.newsbtc.com/news/bitcoin-etfs-witness-18-straight-days-of-inflows-options-traders-eye-100000/" target="_blank" rel="noopener ">spot ETF inflows</a> and 6-15K daily during low spot ETF inflows. Posting this because I’m tired of ‘gov’t selling’ FUDs,” as shared via X. 
<img loading="lazy" decoding="async" class="wp-image-626687 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250" alt="Bitcoin Exchange Inflow - Coinbase Prime" width="4000" height="2250" srcset="https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250?w=4000 4000w, https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/06/@ki_young_ju.jpg?resize=4000%2C2250?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Crypto analyst Skew (@52kskew) <a href="https://x.com/52kskew/status/1806012622913020189" target="_blank" rel="noopener nofollow">provided</a> insights into how these transactions typically occur, “US Gov sent 3.94K BTC to Coinbase Prime to be handled by Coinbase Institutional. There’s typically two options here:<a href="https://www.newsbtc.com/news/bitcoin-otc-desks-dried-up-to-40-btc/" target="_blank" rel="noopener "> OTC desks</a> can auction off the BTC to clients (off-market buyers), or an open market auction (sold over time on the market).” Skew’s explanation makes it clear that the impact on the price is likely to be rather small. 
Adam Cochran, managing partner at CEHV, <a href="https://x.com/adamscochran/status/1806014825849368889" target="_blank" rel="noopener nofollow">highlighted</a> the resilience of Bitcoin in light of multiple bearish catalysts, “Also with US Gov FUD, Mt Gox FUD, most major airdrops finished, markets down, Nvidia off highs, BTC has had every reason to go lower, and it’s still mostly held $60k. Negative news struggling to make a dent.” 
<h2 id="will-gold-s-history-repeat-itself-for-btc">Will Gold’s History Repeat Itself For BTC?</h2> 
Echoing a historically bullish sentiment, Alistar Milne, CIO of Altana Digital, drew parallels to past government sales of assets, “Government selling is bullish. Gordon Brown famously sold the UK’s <a href="https://www.newsbtc.com/news/bitcoin-vs-gold-why-this-trader-believes-btc-will-surge/" target="_blank" rel="noopener ">Gold reserves</a> for less than $300/ounce. One of the worst decisions made by a Chancellor of the Exchequer, ever. Germany &amp; America are making far worse mistakes by selling seized BTC now. They can only sell once.” 
<blockquote class="twitter-tweet"> 
 Government selling is bullish 
 Gordon Brown famously sold the UK’s Gold reserves for less than $300/ounce. One of the worst decisions made by a Chancellor of the Exchequer, ever 
 Germany &amp; America are making far worse mistakes by selling seized BTC now. They can only sell once <a href="https://t.co/i0rZMpuiS0" rel="nofollow">pic.twitter.com/i0rZMpuiS0</a> 
 — Alistair Milne (@alistairmilne) <a href="https://twitter.com/alistairmilne/status/1806068509014704474?ref_src=twsrc%5Etfw" rel="nofollow">June 26, 2024</a>
</blockquote> 
For context, during his tenure as Chancellor of the Exchequer from 1997 to 2007, Gordon Brown made the decision to sell approximately 60% of the UK’s gold reserves between 1999 and 2002, a period known as the “Brown Bottom.” 
The sales were conducted in a series of auctions at prices that ranged between $256 and $296 per ounce—significantly below the gold price in subsequent years, which saw a substantial rise. This action is widely regarded as a financial misstep that cost the UK treasury billions in potential revenue, as gold prices surged to over $1,500 per ounce in the following decades. 
Moreover, there’s another bullish aspect to this. The finalization of these BTC sales could remove a significant overhang on the market as these sales are hanging above the market like a Damocles sword; once done, there’s a major downside risk for the market forever eliminated, better early than late. 
At press time, BTC traded at $61,117. 
<img loading="lazy" decoding="async" class="wp-image-626690 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675" alt="Bitcoin price" width="3628" height="1675" srcset="https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/06/BTCUSD_2024-06-27_13-07-08.png?resize=3628%2C1675?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

Fears Of Bitcoin Sales By US And German Govts Are FUD, Even Bullish: Experts

Innehållsförteckning

NewsBTC

Andra artiklar publicerade 27 juni 2024

Bitcoin Price Prediction: As US Government Sends $240 Million BTC To Coinbase, This Learn-To-Earn...

Cryptocurrencies Gain as BTC Stays Above $60,000

Newly Released Meme Coin to Invest in Now Thursday, June 27 – Base Dawgz, The CoqFather, Brett (T...

Experts Criticize ChatGPT and AI Integration

Major Victory for Popular Altcoin: Won Huge Compensation in Critical Case!

Frax Finance Teams Up with NEAR for Decentralized AI Revolution

Prenumerera på vårt nyhetsbrev och få kryptouppdateringar varje dag!