U.S. Government Conducts Bitcoin Transfers; Is a Correction Approaching in BTC Price?

• Bitcoin (BTC), the world’s largest cryptocurrency, draws attention with an unstoppable price rally, reaching $64,000 in the midst of ongoing bullish momentum.
• As of the time of writing, Bitcoin is still trading at $62,480 with an 8.26% increase in a 24-hour chart, and a market value of $1.21 trillion.
• One of the wallets holding funds seized by the U.S. government on behalf of Bitfinex hacker from the blockchain data company Arkham Intelligence initiated a transfer of 1 BTC at 18:39 UTC.

While the U.S. government’s Bitcoin transfers attract attention, on-chain data reveals the potential next moves for BTC price.

Could a Correction be Approaching in Bitcoin Price?

Bitcoin (BTC), the world’s largest cryptocurrency, is catching attention with an unstoppable price rally, pushing the BTC price up to $64,000. Interestingly, Bitcoin’s price is just 10% away from reaching a new all-time high, keeping investors on the edge of their seats.

Moreover, the significant trading activity recorded by Bitcoin ETFs and the excitement around the upcoming Bitcoin halving continue to fuel the bulls. As the Bitcoin price reached $64,000, it encountered some resistance around $63,750 after a partial reversal.

As of the time of writing, Bitcoin is still trading at $62,480 with an 8.26% increase in a 24-hour chart, and a market value of $1.21 trillion. Within a 12-hour period, the entire crypto market saw liquidations totaling $580 million, with $308 million from long positions and $276 million from short positions, according to Coinglass data.

However, after facing a pullback below $60,000, the BTC price is once again moving upward, supported by robust on-chain metrics. Bitcoin on-chain activity has reached levels unseen since 2022. On-chain data provider Santiment highlighted the following:

• A surprising $35.37 billion in on-chain transaction volume.
• Movement of more than 283,000 unique tokens.
• Particularly, 3,661 whale transactions, each with a value of $1 million or more.

According to crypto analyst Ali Martinez, Bitcoin is not currently facing significant resistance. Instead, there appears to be a strong support barrier in the price range of $54,300 to $56,200. Within this range, approximately 903,540 addresses, accumulating nearly 500,000 BTC, show strong buying interest, reinforcing support levels for Bitcoin.

U.S. Government Transfers Bitcoin

One of the wallets holding funds seized by the U.S. government on behalf of Bitfinex hacker from the blockchain data company Arkham Intelligence initiated a transfer of 1 BTC at 18:39 UTC. Approximately half an hour later, the remaining 2,817 BTC in the wallet were also sent, completely emptying the wallet. These transactions were equivalent to transferring about $173 million worth of Bitcoin from this wallet.

Following this, 0.01 BTC from another wallet holding 12,300 BTC was transferred to an unknown address, as reported by Arkham Intelligence. Shortly afterward, the remaining Bitcoin in this wallet was also transferred. These transfers equated to approximately $923 million worth of Bitcoin being moved from two wallets based on the current price.

This situation could imply that the U.S. government might be applying selling pressure on BTC. However, a $1 billion sale represents less than 0.01% of the total Bitcoin market value. On the other hand, whistleblower Edward Snowden suggested that the U.S. government might be buying Bitcoin this year as a way to reduce national debt.