The cryptocurrencies Bitcoin is trading below $67,000 after holding close to $70,000. Meanwhile, the pair is trading below $67,000 after a strong start to the week, falling more than 5% in the last 24 hours.Ethereum gives up 0.4% to $3,300.
Other altcoins are also trading with losses, led by Avalanche (6%), Solana (-5.8%), Near Protocol (-4.7%) and Bitcoin (-4.3%). Only Ripple, of the top 20 cryptocurrencies on the market, is up 2.4%.
Cryptocurrencies: the reason for today’s falls
The declines occur shortly after The US Government will move seized BTC worth $2 billionAccording to data from Arkham Intelligence, a wallet labeled ‘US Government: Silk Road DOJ’ transferred 29,800 seized BTC to the website Silk Road to an unlabeled address with no prior transaction history. The address then forwarded 19,800 BTC and 10,000 BTC to two different addresses.
Arkham analysts suspect the transfer of 10,000 BTC worth $670 million was a deposit to an institutional service or custody facility. Prior to the transfer, the US government held seized bitcoins worth $670 million. $12 billionaccording to data managed by Arkham.
These movements have raised concerns among investors, who fear that it will generate an excess of supply in the market.
These movements occur just after Donald Trump and the Republican Party will announce their plans for the leading cryptocurrency at the Bitcoin 2024 Conference in Nashville, Tennessee, which included the creation of a strategic BTC reserve and the preservation of these digital assets for at least 20 years in order to reduce the debt of the world’s largest economy.
“I want it minted, minted and manufactured in the United States. If we don’t do it, China will.”Trump said in his speech, while comparing the cryptocurrency industry to “the steel industry of 100 years ago“They are still in their infancy. One day they will probably surpass gold. There has never been anything like this,” said the Republican candidate, who promised to remove the president of the Securities and Exchange Commission (SEC), Gary Gensler, if elected.
The Fed is back in the spotlight of investors
Likewise, Alice Liu, research director at CoinMarketCap, pointed out that these drops could also be due to the effect of “buy the news, sell the fact”as the rally peaked in the days leading up to Trump’s speech. “There is no optimism in the market now,” said this expert, who believes that the market is very attentive to what the Federal Reserve (Fed) have to say on Thursday. The market is discounting that the central bank will not touch interest rates, but expects that Chairman Jerome Powell and his people will make some hint at a cut in official rates in September.
On the other hand, the ETH Spot Exchange Traded Funds (ETFs) have not started their journey on the stock market on the right foot. According to figures from Farside Investors, these funds have registered Net outflows of $340 million in its first week on the marketwith Grayscale’s ETHE leading the losses with net outflows of over $1.5 billion. However, the rest of the investment products have managed to attract $340 million in net inflows. As with BTC ETFs, analysts expect the funds to gain traction as ETHE’s adjustment is completed.
Source: Ambito
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