Recent reports have circulated within the cryptocurrency community that the United States government has moved 10,000 Bitcoin (BTC). Earlier this week, an Arkham official and on-chain investigator confirmed that these reports are in fact false. ZachXBT, the individual in question, explained that the warning sent by Arkham was an error. According to the firm, malicious actors may have created labels associated with certain wallets, and these labels were abnormally adjusted, which led to assumptions that the US government was selling their Bitcoin. The specific wallets in question had previously been linked to the notorious darknet bazaar, Silk Road, however the US’ Bitcoin had not moved.

As it stands, there is insufficient evidence to prove that the false claims regarding the US government’s cryptocurrency holdings had any significant effect on the price of BTC. In the timeframe based on the false claims, BTC’s price fell by 6% to around USD$27,000. One possible explanation could be the rumors circulating amongst the cryptocurrency space.

Recent claims also alleged that a government crypto fund was in effect. Though these claims were not verified and were potentially false, it could explain the movement in BTC value. Though this may never be confirmed, it is quite possible the market reacted hastily to unconfirmed rumors and news surrounding the US government.

Overall, it is evident that rumors play a huge part in the growth and decline of the cryptocurrency market, and caution should always be taken when assessing news. Investors should be aware that false news can be used maliciously by malicious actors and large price swings can occur due to the way the crypto space operates. Arkham Intelligence warned to only take news reports that are verified and always remain aware of potential manipulation.



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