Bitcoin Adjusts as US Government Moves $1 Billion in BTC

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Bitcoin (BTC) has embarked on an impressive price surge, catapulting to $64,000, a mere 10% away from a potential new all-time high. Investors find themselves teetering on the edge, captivated by the cryptocurrency’s relentless ascent.

Compounding the fervor, Bitcoin ETFs have been registering substantial trading activity, while anticipation surrounding the impending Bitcoin halving continues to fuel bullish sentiments.

Bitcoin (BTC) Price Faces Brief Rejection At $64,000

However, the journey to $64,000 was not without its challenges. The cryptocurrency faced a momentary rejection at $63,750, prompting a partial reversal. Presently, Bitcoin stands at $61,686, showcasing an 8.26% increase over the past 24 hours and boasting a market cap of $1.21 trillion.

In a tumultuous 12-hour span, the broader crypto market witnessed liquidations totaling $580 million. Long positions contributed $308 million, while short positions accounted for $276 million, according to data from Coinglass.

Despite a brief setback under $60,000, Bitcoin is regaining upward momentum, supported by robust on-chain metrics. On-chain activity has surged to levels unseen since 2022, as indicated by data from Santiment:

A remarkable $35.37 billion in on-chain transaction volume.
Movement of over 283,000 unique tokens.
Notably, 3,661 whale transactions, each exceeding $1 million, underscore the cryptocurrency’s resurgence.

📊 Justifying #Bitcoin's historic run to a $64K high today, #onchain activity on #crypto's top network has already exceeded levels not matched since 2022.

📌$35.37B in #onchain transaction volume
📌283K unique tokens moved
📌3,661 $1M+ whale transactionshttps://t.co/xDVSCxMg4v pic.twitter.com/EKVWgC2bWa

— Santiment (@santimentfeed) February 28, 2024

Crypto analyst Ali Martinez points out that Bitcoin currently encounters minimal resistance in its path. Rather, a robust support zone lies within the $54,300 to $56,200 price range. Within this span, an impressive 903,540 addresses have aggregated nearly 500,000 BTC, showcasing substantial buying interest and fortifying Bitcoin’s support levels.

U.S. Government Moves $1 Billion in Bitcoin

In a noteworthy development, the U.S. government initiated a significant Bitcoin transfer involving a wallet identified by Arkham Intelligence as holding seized Bitfinex hacker funds. The transfer began with 1 BTC, followed by the subsequent movement of the remaining 2,817 BTC approximately thirty minutes later, effectively emptying the wallet. This collective transfer amounted to around $173 million in Bitcoin.

Shortly thereafter, another wallet holding approximately 12,300 BTC executed a transfer of 0.01 BTC to an undisclosed address, as reported by Arkham Intelligence. Subsequently, the remainder of the BTC from this wallet was also moved, resulting in a total value of approximately $750 million. The combined value of Bitcoin transferred from the two wallets reached about $923 million, based on the current price of the leading cryptocurrency.

While this substantial movement could potentially introduce selling pressure on Bitcoin, the $1 billion sell-off represents less than 0.01% of the total Bitcoin market cap. In contrast, whistleblower Edward Snowden has floated the idea that the U.S. government might be covertly accumulating Bitcoins this year as a strategy to reduce national debt.