Bitcoin Dump Goes Below $27k After False Signals About US Government Selling

Key Points:

• Bitcoin (BTC) has plummeted to the $26,900 region after an alarm about the movement of 9819 BTC by the US authorities in preparation for a sale.
• However, KOL ZachXBT deleted the related tweets and said the Arkham warning they received earlier was due to false flagging.
• BTC price made a slight recovery toward the $27,500 level.

Bitcoin (BTC) was excited after the US inflation index dropped but received a substantial dump due to a false warning signal about the US government preparing to sell BTC.

Early this morning, a Twitter user said he had received an Arkham alert indicating that the “US government address transferred 9819 bitcoins”. This immediately caused the community to shake. The price of BTC at that time plummeted from $28,200 to $26,900.

Previously, the US government sold 9,861 BTC on March 14, earning $ 216 million at that time, with a selling price of around $21,800. The US has to pay the fee when making a sale transaction amounting to more than 215,000 USD.

The above BTC is part of a 50,000 Bitcoin sum confiscated by US authorities from James Zhong, who has admitted to hacking and stealing assets from Silk Road, the notorious Internet black market that they shut down. Notably, the US government intends to liquidate the remaining 41,500 BTC in four more sales in 2023.

However, ZachXBT, data firm Arkham and on-chain detectives confirmed that bitcoins held by the US government had not been transferred. Now, KOL has deleted the related tweets and says that the Arkham warning they received earlier was a personal error flag. This caused the BTC price to have a slight recovery toward the $27,500 region,

Arkham has made a false announcement before. Earlier, on the evening of April 26, the cryptocurrency with the largest market capitalization in the world surged sharply, from $28,900 to $30,000. But a few hours later, this on-chain data statistics unit issued a warning about the transactions of transferring nearly $ 28 million in Bitcoin of the Jump Trading investment fund to several major exchanges. Bitcoin slid to 27,235 USD on the Binance exchange.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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