Summary:
- Price Surge: Bitcoin reached its highest level in six weeks, trading close to $70,000 after former U.S. President Donald Trump reiterated support for cryptocurrency.
- Price Decline: The price fell to $66,000 in Asian trading hours on Tuesday morning following a significant BTC transfer by the U.S. government.
- Other Cryptos: Ether was up 4.28% at $3,350, while Solana increased by 5.9% to $193.
- Market Reaction: Shares of New York-listed cryptocurrency firms gained before the open on Monday after Trump’s comments.
Bitcoin experienced a significant price movement on Monday, reaching close to the $70,000 mark, its highest level in six weeks. The price surge came after former U.S. President Donald Trump expressed his support for cryptocurrency over the weekend. According to The Block’s price page, Bitcoin was trading at around $69,800, up 3.32% in the last 24 hours. Other major cryptocurrencies also saw gains, with Ether trading up 4.28% at $3,350 and Solana climbing 5.9% to around $193.
However, the rally was short-lived. Bitcoin’s price fell to $66,000 in Asian trading hours on Tuesday morning, following a significant move by the U.S. government. Blockchain data from Arkham Intelligence revealed that a wallet tagged as “U.S. Government: Silk Road DOJ” transferred 29,800 BTC, worth approximately $2 billion, related to the Silk Road website to an unlabeled address. This address then forwarded 19,800 BTC and 10,000 BTC to two different addresses.
The sudden transfer sparked investor concerns, especially as it came just two days after Trump promised to stack BTC if re-elected. The 10,000 BTC transfer, valued at $670 million, was suspected by Arkham analysts to be a deposit to an institutional custody or service.
The market reacted negatively to the news, with Bitcoin’s price tumbling below $67,000 following the transfer, extending its decline from the $70,000 session high earlier in the day. Investors are closely watching the situation as the U.S. government’s actions could impact market sentiment and price stability.
Disclaimer:
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