The German government has made another significant move in the cryptocurrency market today by transferring 1,000 Bitcoin, valued at $55.8 million. Out of this amount, 500 Bitcoin, worth $27.9 million, has been deposited to popular cryptocurrency exchanges Bitstamp and Kraken. This news was shared by on-chain analytics provider SpotOnChain through a recent tweet.
This transfer is part of a series of large-scale movements by the German government since June 20. In total, they have transferred out 11,033 Bitcoin, valued at $669 million, at an average price of $60,669 per Bitcoin. These transfers have had a noticeable impact on the market, causing Bitcoin’s price to drop from $62,000 to $54,000 over the past week. The transfer of $54 million in Bitcoin on June 20 and another 3,000 Bitcoin worth $174 million on July 4 have been particularly attributed to the recent market downturn.
Investors and market watchers have expressed concerns about these ongoing transfers. Tron Founder Justin Sun has offered to purchase all of the German government’s Bitcoin holdings off-chain in order to mitigate further negative impacts on the market. However, the German government has not responded to this offer.
According to SpotOnChain, the German government currently holds 38,826 Bitcoin, valued at approximately $2.16 billion. The continuous selling activity by such a large holder has raised questions about the future stability of the market and potential strategies to manage the influence of these large-scale Bitcoin transfers on market prices.
Given the significant holdings and ongoing transactions, the crypto market is closely monitoring the German government’s next moves. Further liquidations could continue to impact Bitcoin’s price and overall market sentiment.
