Ethereum
US Government Transfers $12 Million in ETH
In a notable move that caught the attention of the crypto community, the US government transferred a massive sum Ethereum (ETH) reserve on Monday July 1st. The transfer sparked speculation about a possible ETH sell-off, which could reflect the downward trend Bitcoin (BTC) suffered amid sell-offs by the German and US governments. Additionally, the planned launch of Spot Ethereum ETFs this month further fuels these concerns.
US government changes Ethereum reserve
According to Arkham Intelligence, the US government recently transferred 3,375 Ethereum. This reserve, valued at approximately $11.75 million, was transferred Monday to an unidentified address. The timing of the transfer is particularly important because it precedes the expected approval of Spot Ether ETF’s S-1 filings.
Last week, the U.S. Securities and Exchange Commission (SEC) referred these filings to lead plaintiffs, including BlackRock, Fidelity and VanEck. Analysts therefore predict that the applicants could submit additional S-1 amendments this week. In the meantime, they have proposed a potential approval date of mid-July.
The movement of such a large amount of Ethereum ahead of these key events has raised concerns that the U.S. government is preparing to capitalize on the news of the Ethereum ETF S-1 approval. If the government sells its Ethereum holdings, it could negatively impact the price of ETH, just as it did for Bitcoin.
The transferred funds are related to assets seized by the US government from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin. Potapenko and Turogin were deceived by investors who promised them high returns on their cryptocurrency mining operations. These fraudulent activities led to the confiscation of significant crypto assets by the authorities, including the Ethereum that was transferred.
This Ethereum transfer follows a similar pattern seen last week when the US government transferred 4,000 Bitcoins to exchanges in June. Repeated movements of seized crypto assets have led markets to speculate about impending dumpings, especially in light of the upcoming crisis. Ethereum ETF
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Currently, the US government holds 50.524K Ethereum, worth a staggering $175.46 million. Meanwhile, Ethereum price has just recovered above $3,400, but the trend could be affected by the latest transfer.
Read also: ETH Price Rises 5% Due to Increased Whale Activity Ahead of Ethereum ETF Approval
Concerns over Bitcoin dumping
The June transfer of BTC by the US government caused widespread fear, uncertainty, and doubt (FUD) in the market. Additionally, on Friday, June 28, a notable transfer of 11.84 BTC was also recorded from the same government-held wallet.
As of now, the US government holds 213,534,000 Bitcoins, valued at $13.41 billion. With speculations of an imminent sell-off due to last Friday’s BTC transaction, analysts have hinted at an increase in FUD in the market. Additionally, the German government’s BTC sales have added to the bearish sentiment in the market and among investors.
In the latest update, the German government 400 BTC was transferred to exchanges such as Coinbase, Bitstamp and Kraken. The transferred bitcoin is worth approximately $25.28 million. This again hints at an impending sell-off by the German government just after the bitcoin price rebounded above $63,000.
Moreover, over the past two weeks, the address associated with the German government has transferred more than 2,700 BTC to crypto exchanges. Therefore, market participants are worried about a potential drop in the price of Bitcoin. Moreover, expectations for the July rebound are at risk.
Read also: Ethereum Network to Get Major Boost with SSF Roadmap, Says Vitalik Buterin