US Government Wallet Transfers $699,000 Worth of Ethereum Amidst Price Decline and Market Downturn
- US gov wallet transfers 300 ETH to address ending in “d46” on Aug. 5.
- Wallet balance now $0, funds from US government seizure.
- ETH price drops post-ETF launch due to lack of demand.
- 130,000 ETH sold, causing price to drop to $2,100 on Aug. 5.
- Ethereum ETFs see $146 million outflow, total outflow $430 million.
- Market downturn attributed to macroeconomic factors and geopolitical tensions.
Summary :
According to Arkham Intelligence, a wallet believed to be controlled by the United States government transferred 300 Ether (ETH) worth approximately $699,000 to a wallet address ending in "d46" on Aug. 5. The funds within the wallet resulted from a US government seizure. This transfer comes after a disappointing price action for Ethereum following the launch of Ethereum exchange-traded funds (ETFs) in the United States. Independent analyst Crypto Lion attributes the struggling price action to a lack of demand for Ethereum on exchanges. The price of Ethereum also suffered due to a downturn in financial markets caused by an interest rate increase by the Bank of Japan. Market makers selling approximately 130,000 ETH further contributed to the decline, with Ethereum trading well below its 200-day exponential moving average. Additionally, Ethereum investment funds and products experienced outflows of $146 million, with a total outflow of $430 million since the launch of the Ethereum ETF in the US. CoinShares suggests that macroeconomic factors and geopolitical tensions are driving the current market downturn, potentially leading to a longer recovery period for Ethereum than expected.
Sources :
- CoinTelegraph
