It hit 70,000 and fell instantly. Was the U.S. government responsible for transferring $2 billion in BTC?

Written by Mary Liu, BitpushNews

In early trading on Monday, the crypto market got off to a hot start, with Bitcoin briefly soaring to $70,000 for the first time since mid-June.

US presidential candidate Donald Trump spoke at a Bitcoin conference over the weekend and stated that if he is re-elected as president, he intends to use BTC as a strategic reserve asset. Independent presidential candidate Robert F. Kennedy Jr. Jr. made similar remarks.

After Trump’s speech, Bitcoin once fell back to $66,650, but bullish power resumed in early trading on Monday, pushing BTC to the resistance level of $70,000. Market sentiment rose, but BTC then fell back below the support level of $67,000. At noon It fell to an intraday low of $66,393 after hours. At press time, Bitcoin was trading at $67,277, down 1.2% in 24 hours.

Altcoin trading was mixed, with the top 200 tokens by market capitalization mixed.

Book of Meme (BOME) was the top gainer, up 13.4%, followed by Bitcoin SV (BSV) up 11.9% and Convex Finance (CVX) up 11.6%. Wormhole was the top loser, down 6.3%, while SATS (1000SATS) fell 5.1% and Safe (SAFE) lost 4.9%.

The current overall market value of cryptocurrency is US$2.41 trillion, and Bitcoin’s market share is 55.1%.

Before the release of important news such as the Federal Reserve’s interest rate decision, the US employment report and the financial reports of large technology companies this week, the US stock market also showed a volatile trend. At the close, the S&P 500 index and the Nasdaq 500 index rose 0.08% and 0.07% respectively. , the Dow Jones index fell 0.12%.

Secure Digital Markets analysts said: “This week’s reports will be crucial to determine whether technology stocks and crypto assets can rebound. Earnings worth watching include PayPal, AMD and Microsoft on Tuesday; Meta on Wednesday; and Thursday’s Amazon, Apple and Coinbase

Although the Fed is expected to keep interest rates unchanged on Wednesday, many market observers believe that Fed Chairman Powell will use a follow-up speech to lay the groundwork for a September rate cut, which Wall Street currently believes is possible. is 100%.

The U.S. government transferred $2 billion in “Silk Road” tokens

According to on-chain data shared by Arkham Intelligence, the U.S. government’s transfer of BTC may have been the cause of the brief market sell-off.

Arkham Intelligence’s blockchain data shows that a wallet tagged “US Government: Silk Road Justice” transferred 29,800 BTC to an unmarked address with no previous transaction history. The address then forwarded 19,800 BTC and 10,000 BTC to two different addresses.

Arkham analysts predict that one of the 10,000 BTC transfers worth $670 million was a deposit to an institutional custodian or servicer.

Chain analyst @ai_9684xtpa posted on the Four months ago, this operation may have been for selling, or it may just be a regular fund transfer, because there was also a wallet fund transfer operation on April 2, and it remains to be seen what will happen next.

Trading sideways at key resistance levels

Bitfinex analysts said: “BTC encountered strong upward resistance in the $68,000-69,000 area and withstood a 7.24% intra-week correction as the accumulation trend in the spot market continues, we The $68,000-$69,000 level is expected to continue to act as resistance, and it is expected to fluctuate around these levels or fall slightly."

Bitfinex data shows that the implied volatility of BTC options initially surged to 4 last week. Monthly high of 68.6% before declining as most swing/position traders reduced risk ahead of the Nashville meeting. Realized volatility briefly spiked over the weekend and during the Bitcoin Conference, but implied volatility continued to decline significantly, which is consistent with typical behavior leading up to options expiration, especially in the absence of major upcoming events or catalysts.

Bitfinex said: “We believe this activity in the options market is driven by some risk reduction in short-term calls and puts as the market digests the launch of the Ethereum ETF and short-term catalysts such as the Nashville conference . Another key influence is the monthly expiration date of August 2. Although the contract has a net open interest notional value of approximately $2.2 billion, its time value decreases as the expiration date approaches, so Typically results in a decrease in implied volatility."

Analysts predict: “Looking forward, the market will adjust as monthly contracts expire this weekend. We expect that implied volatility may face further downward pressure. The decline in implied volatility may cause Bitcoin to stagnate, or even A bit back from the $68,000-$69,000 resistance zone."

TradingView analyst TradingShot noted that the resistance zone highlighted by Bitfinex is consistent with Bitcoin's "parabolic growth channel," suggesting that once this resistance zone is overcome, Bitcoin will rise sharply. .

TradingShot said: “Bitcoin is about to end July with a strong test of its historic parabolic growth channel. This area marks its cyclical bottom and is also the recommended buying area after the bear market cycle. This marks the continuous The 5th month of sideways trading, as shown on this 1M chart, is a pattern of behavior that usually occurs before BTC begins the most intense part of the bull cycle, the "parabolic rally""

TradingShot Summary. Dow: "Before this, of course, is the accumulation phase within the parabolic growth channel. We have been past this phase for several months, and depending on the time cycle, the market has just entered the (green) zone and the parabolic rebound can start at any time."

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