Bitcoin
Germany Transfers Around $40 Million in Bitcoin Amid Ongoing Selloff
The German government transferred 700 Bitcoins (BTC), valued at approximately $40.47 million. This transaction is part of an ongoing trend: the government has been steadily selling its Bitcoin holdings since June.
Bitcoin sell-off in Germany continues
According to blockchain data analytics platform Lookonchain, the German government has transferred 700 new BTC to cryptocurrency exchanges.
The country’s latest transaction has drawn mixed reactions on cryptocurrency Twitter, with some predicting that the price of Bitcoin could fall to the $40,000 region soon.
The German authorities have been actively selling their Bitcoin holdings, adding significant pressure to the cryptocurrency market. In recent weeks, they have transferred substantial amounts of Bitcoin to various cryptocurrency exchanges.
Despite the recent substantial liquidations, the German government still holds 39,826 BTC, worth $2.29 billion. This activity has put pressure on the price of Bitcoin, falling more than 7% in the past seven days.
Since June 19, there has been a transfer of 17,788 BTC (approximately $1.08 billion) involving the German government, the US government, and the now-defunct exchange Mt. Gox.
Since July 1, the German government has been conducting daily BTC transfers. These entities collectively hold 396,210 BTC, valued at $22.78 billion.
As of July 5, the German government holds 41,226 BTC valued at $2.28 billion, while the U.S. government holds 213,297 BTC valued at $11.72 billion. Additionally, Mt. Gox controls 141,687 BTC, totaling $7.78 billion.
For those who don’t know, the German government had previously confiscated these Bitcoins during several criminal investigations, including cases involving movie piracy sites, darknet markets, and other illicit activities. Initially, the government held about 39,826 BTC, valued at $2.29 billion.
Bitcoin Price Faces More Volatility
Bitcoin has fallen to a two-month low due to a combination of factors: uncertainty surrounding the US presidential election, the impending refund of funds by the now-defunct exchange Mt. Gox and selling pressure from struggling cryptocurrency miners.
Mt. Gox, which was once the leading cryptocurrency exchange before its collapse in 2014, it is scheduled to begin refunding their creditors. This has raised fears that the influx of Bitcoin into the market could further depress prices as creditors may opt to sell their recovered funds immediately.
Cryptocurrency miners are also under financial pressure, with miners’ daily revenue falling down by 75% since the April halving event that reduced its rewards. In response, miners have been selling their Bitcoin holdings to cover costs, contributing to the overall selling pressure.
Despite the current crisis, some analysts remain optimistic about Bitcoin’s long-term prospects. Tony Sycamore, a market analyst, believe This is a period of consolidation and Bitcoin could retest its March highs and potentially reach $80,000.
However, the short-term outlook remains uncertain. Investors will be closely watching for any dovish signals from the Federal Reserve, which could boost the cryptocurrency market.
At the time of writing, Bitcoin is trading at $56,797, which represents a price drop of over 20% in the last 30 days.