TechFlow reported on August 19, according to Bloomberg, that while global stock markets are rebounding toward record highs amid easing concerns over U.S. economic growth, Bitcoin and the broader crypto market have seen significant declines this month. Bitcoin has dropped about 10% in August, underperforming the MSCI World Index, which rose nearly 1%, as well as gold, which climbed to a record high.
Analysts point out that one of the challenges facing digital assets is the risk associated with how the U.S. government handles its seized Bitcoin. According to an Arkham Intelligence report, on-chain data shows that last week the U.S. transferred $600 million worth of confiscated Bitcoin into exchange wallets operated by Coinbase Global Inc.
Khushboo Khullar, venture partner at Lightning Ventures, said the potential sale of Bitcoin by the U.S. government may have caused temporary downward price pressure, but the impact is not expected to last long.
