Bitcoin Dips on US Government Sale Fears, Analyst Warns of Further Pullback

The cryptocurrency market experienced a downward trend on Wednesday, fueled by concerns over a potential sale of $240 million worth of Bitcoin by the US government. Bitcoin dropped below $61,000, following a recent surge to $62,000. This decline was attributed to the transfer of 3,940 Bitcoin from US government-linked wallets to cryptocurrency exchange Coinbase. Ethereum also saw a pullback, retracting from its Tuesday gains. The market witnessed a $93.78 million wipeout in futures positions, leading to the liquidation of 34,986 traders. Bitcoin's Open Interest declined by 1.34% to $32.12 billion, a sign often interpreted as a bullish signal. Analyst Justin Benett warned of a potential further drop to $55,000 or $53,000 if Bitcoin fails to reclaim $62,000 in the next 48 hours. However, analyst Michaël van de Poppe predicted a recovery for the altcoin market due to the anticipated launch of spot Ethereum ETFs.