Yesterday, we talked about Trump and Robert Kenney, Jr. promising to create a strategic national reserve out of the Bitcoin that the US government possesses as part of their presidential election campaigns. It seems Biden intends to deprive them of that opportunity. Arkham Intelligence reports that 30,000 BTC of the 200,000 are moving.

Economist Peter Schiff thinks that Trump should have kept his mouth shut. The Biden administration will now sell every last satoshi.

Based on these rumours, Bitcoin once again plummetted, dropping by 5% in 24 hours.

In July, Bitcoin has already faced serious seller pressure due to a sell-off by the German government of 50,000 $3 billion BTC. Another 62,000 BTC (about $4 billion) went to former clients of the Mt.Gox crypto exchange. According to the analytical agency Glassnode, in just two months, key players in the spot market have put pressure on 147,500 BTC, which is worth $10 billion.

Fuelled by negative news, traders in the futures market have favoured short positions. As a result, the funding rate has already fallen into negative territory.

However, despite a lot of negative news and factors, Bitcoin remains near its high. This is made possible by long-term trends (the emergence of spot ETFs in the United States, the recent halving event, and anticipation that the Federal Reserve will reverse course on interest rates), as well as the unwillingness of most market participants to part ways with their coins at current prices. As short-term holders (STH) take profits, long-term holders (LTH) are once again accumulating coins. The convergence of accumulation curves is a reliable sign that Bitcoin's price will rise soon.

If the Biden administration sells off the US government's Bitcoin reserves in the short term, it will naturally result in a new round of price corrections. However, the event won't have much of a noticeable impact in the long run. 

StormGain Analytical Group 
(platform for trading, exchanging and storing cryptocurrency)

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