Germany Continues to Dump Bitcoin! Will the Market Hold?
A series of transactions is currently shaking up the crypto market! Germany recently proceeded with the sale of a significant amount of Bitcoin. Suspicious fund movements totaling more than $170 million have been closely followed by Arkham. The analytics firm reported that German authorities transferred a considerable amount of Bitcoin to exchanges. This suggests a potential liquidation of their BTC holdings in an already weakened market.
Massive Bitcoin Sale: Germany Releases $170 Million!
On June 25, 2024, the wallet labeled “**German Government (BKA)**” sold 900 BTC in three separate transactions. The first and second transactions, each involving 200 BTC, were sent to the Coinbase and Kraken exchanges, respectively. A third transaction, representing 500 BTC, was sent to a previously unknown wallet. After these transfers, the wallet in question still holds 46,359 Bitcoin! This represents more than $2.8 billion and could introduce significant selling pressure that may affect the price of Bitcoin.
This new massive sale comes at a time when the price of Bitcoin is struggling to maintain its value above the psychological threshold of $60,000. Analysts fear that these additional sales might exert downward pressure on the price of BTC. The latter is up by +2% over the past 24 hours and is around $61,540.
Should the Crypto Market Fear the Worst?
Despite the sale by the German government, some companies remain optimistic. For example, MicroStrategy recently purchased $786 million worth of Bitcoin, thus expanding its significant holdings. This acquisition comes after raising $800 million through convertible senior notes.
The funds sold by Germany come from the seizure conducted on the operators of the Movie2k.to movie piracy site, last active in 2013. The suspects voluntarily handed over the funds to the German Federal Criminal Police Office (BKA) in January.
The crypto market continues to navigate uncertain waters. The actions of the German government highlight the significant impact that decisions by state actors can have on the market. Market investors remain vigilant, anticipating the potential repercussions of these sales in the short and medium term.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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