2024-7-9 13:36 |
The German government has once again made a massive Bitcoin transfer. The transfer comes at a time when the crypto market continues to struggle.
Per data from analytics firm Arkham Intelligence, German authorities move a total of 1000 BTC. The funds were valued at $56.65 million at the time of transfer.
Continued sell-offs250 BTC was sent to the cryptocurrency exchange Coinbase, while another 250 BTC was sent to the crypto exchange Bitstamp. Interestingly, an additional 500 BTC was transferred to an unknown address identified by “139PoP…H7ybVu.”
Following the recent transfers, the government now holds 38,826 BTC, valued at approximately $2.25 billion. The current stash accounts for approximately 7.3% of Bitcoin’s 24-hour trading volume of $30.5 billion.
Earlier this year, the government confiscated 50,000 Bitcoin, valued at over $3 billion at the time, from the illegal movie streaming site Movie2k.to. Subsequently, in June 2024, the authorities started unloading their cryptocurrency holdings.
Since then, the government has liquidated over 10,000 BTC. Last week alone, it sold 7,583 Bitcoins valued at approximately $434.9 million at the time.
The transactions have been executed via various centralised exchanges.
The recent sell-offs have sparked market-wide concerns from various avenues. One cryptocurrency analyst warned his followers on X about the impending volatility that could follow.
German parliament member Joana Cotar has also criticised the government’s move. Cortar believes that the “hasty” sell-off is not “sensible.”
She called the liquidations “counterproductive” for the nation and has suggested the creation of a “comprehensive Bitcoin strategy.”
Cotar has advised holding Bitcoin in the state treasury, “issuing bonds,” or “creating a conducive regulatory environment,” as alternatives to the current strategy.
Meanwhile, Tron founder Justin Sun has even proposed to buy all of the German government’s Bitcoin to mitigate market impact. Sun said that he is “willing to negotiate with the German government” but did not disclose how such a massive transaction would be executed.
Sentiment turns bearishAmidst this backdrop, cryptocurrency analysts have turned bearish over Bitcoin. Germany’s recent move, paired with the distribution of Bitcoin as a part of crypto exchange Mt. Gox’s reimbursement plans, is hailed as the key contributor to this trend.
Crypto analyst Tony “The Bull” Severino told his followers on X that he expects “more downside,” based on the Bollinger Bands volatility indicator.
Research firm Santiment also shared a similar view, underlining the poor performance of both Bitcoin and altcoins, stating:
After a brief bounce to get trader hopes up, crypto has again shown retraces to bring fear back on the menus as the weekend comes to a close.
At the time of publication, Bitcoin was trading at $57,561, down over 8.3% over the past week.
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