Rumors of U.S. government sale of Bitcoin send BTC price down to $26,770 before recovering

On May 10, the Twitter community was buzzing rumor The U.S. government is selling huge amounts of bitcoin. Shortly after, however, on-chain information platform Arkham Intelligence countered that it was unable to find any data from government wallets that indicated the movement of Bitcoin.

At noon on May 10, bitcoin prices began to show signs of rising as the U.S. Consumer Price Index (CPI) came in below expectations. Within minutes, Bitcoin broke through the $28,000 mark and stayed there for several hours. However, at 10 pm that night, Bitcoin made a sudden U-turn, falling by more than 5% to $26,770 in just one hour.

Rumors of Bitcoin sale by US government lead to price volatility

15-minute frame BTC/USDT trend chart | Source: TradingView

Meanwhile, the Twitter account @1kbeetlejuice with more than 3,500 followers claimed that the U.S. government was moving bitcoin. According to the tweet, the government sold approximately 9,800 BTC ($264 million). The user claims that the data source is provided by Arkham.

Arkham quickly dismissed the rumors, saying they had “not observed any activity by the U.S. government.” They think the problem is with community tags. Users can manually label wallet addresses and modify the dataset, Arkham explained. They added that this manual change “was not made by Arkham,” and that the platform flagged only seven Bitcoin wallets linked to Silk Road.

“The custom tagged entity on Arkham allows users to receive alerts and transaction logs for addresses that Arkham may not be officially tagged as part of the entity. These are the only Silk Road-related Bitcoin wallets we tagged, and there are no changes today.”

Silk Road is a black market website that criminals often use to buy illegal items such as drugs, weapons and pornography with Bitcoin. It was shut down by the U.S. government in 2013, and billions of dollars worth of bitcoins were confiscated.

Currently, the U.S. government holds approximately $1.9 billion worth of Bitcoin. Earlier this year, the U.S. government sold approximately 9,861 bitcoins ($216 million) involving Silk Road scammer James Zhong. They plan to sell the remaining 41,490 BTC in four tranches by the end of 2023.

Arkham has confirmed that no bitcoin transactions have been made to these wallets. Analyst @apes_prologue also assured the community that there is no evidence that such large amounts of Bitcoin are being moved by the US.

Separately, the amount of Bitcoin held in the U.S. has not changed in recent days, according to data from Glassnode. Similar rumors also circulated on April 27.

like Bitcoin Magazine According to the report, the Twitter account @tier10k cited Arkham data showing that the United States sold Bitcoin heavily, causing the price to plunge by more than 8% in just one hour. At the time, Arkham clarified that this was a misunderstanding caused by @tier10k tagging “US Gov” and “Mt Gox” and not a false warning made by Arkham.

It is not clear what caused the sudden drop in the price of Bitcoin on May 10. Some people speculate that it was because Tesla announced the suspension of Bitcoin payments, and some people think that it was related to the rumors of the US government selling off Bitcoin. Despite these rumors, there is currently no evidence that the U.S. government has sold any bitcoins. The cryptocurrency market continues to be volatile, with frequent price swings. Investors need to be vigilant and cautious when making investment decisions.

@tapchibitcoin The truth is that the US rumors unleashed Bitcoin, causing the price to plummet #tapchibitcoin #tiendientu #bitcoin #bitcoin ♬ Background Music – Bitcoin Magazine

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