The U.S. government moved $2 billion worth of Bitcoin, raising concerns among investors about possible selling pressure
Bitcoin dropped to $66,000 from nearly $70,000 in a day amidst speculations of tech stock sell-offs this week. On Tuesday, Microsoft $MSFT and Advanced Micro Devices will report earnings after the bell, followed by Meta $META’s earnings on Wednesday after the market closes. On Thursday, Apple $AAPL and Amazon $AMZN will share their earnings reports after the closing bell. Experts believe that the massive sell-offs are a bit of an overreaction, but it’s not over yet.
The price of Bitcoin has also declined following the U.S. government’s transfer of $2 billion worth of Bitcoin to two new wallets, raising concerns about potential selling pressure. The leading cryptocurrency experienced a 4% decline on Tuesday, slowing down after a price surge following Trump’s speech at the Bitcoin conference. Speaking at the conference in Nashville on Saturday, the former president doubled down on claims that the U.S. must emerge as the global crypto capital. He also vowed to establish a strategic national Bitcoin reserve and oust Securities and Exchange Commission Chairman Gary Gensler if elected in November.
On the other hand, Ether, the second-largest cryptocurrency by market cap, remained strong despite massive sell-offs in the spot Ether ETFs. Other than the first day of trading last week, the spot Ether ETFs have seen only massive outflows, totaling $440 million so far, according to ETF tracker Farside.
While Ether was trading around $3,300, Solana dropped by over 5% on Tuesday to reach $181. Other major cryptocurrencies such as BNB, Dogecoin, and Cardano also experienced losses of over 3%, 3.5%, and 3.6%, respectively. Overall, the global crypto market cap was down by 3% on Tuesday.
Now, all eyes are on the upcoming Fed’s FOMC meeting and decision on interest rates on Wednesday. The impact on the crypto market is highly anticipated as crypto is becoming more mainstream every day.
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