The government of Germany has recently transferred 700 Bitcoins (BTC), valued at around $40.47 million. This transfer is part of an ongoing trend where the government has been consistently selling its Bitcoin holdings since June. The liquidation of Germany’s Bitcoin holdings is continuing.
As per data from the blockchain analytics platform Lookonchain, the German government has sent 700 BTC to cryptocurrency exchanges. This latest move has sparked varying reactions on crypto Twitter, with some predicting a potential drop in Bitcoin’s price to the $40k range soon.
German authorities have been actively offloading their Bitcoin holdings, adding significant downward pressure on the cryptocurrency market. Over recent weeks, they have moved substantial amounts of Bitcoin to different cryptocurrency exchanges.
Despite the notable sell-offs, the German government still holds 39,826 BTC, valued at $2.29 billion. This selling activity has weighed on Bitcoin’s price, which has dipped by more than 7% in the past week.
Starting from June 19, there has been a transfer of 17,788 BTC (approximately $1.08 billion) involving the German government, the U.S. government, and the now-defunct Mt. Gox exchange. Since July 1, the German government has been carrying out daily BTC transfers. Collectively, these entities hold 396,210 BTC, valued at $22.78 billion.
As of July 5, Germany holds 41,226 BTC worth $2.28 billion, while the U.S. government possesses 213,297 BTC valued at $11.72 billion. Additionally, Mt. Gox controls 141,687 BTC, amounting to $7.78 billion.
For context, the German government had initially confiscated these Bitcoins in various criminal investigations involving film piracy websites, darknet marketplaces, and other illicit activities.
In related news, a German MP has recommended that the government pause BTC sales in light of the necessity for a strategic reserve. Bitcoin’s price is anticipated to see more volatility in the coming period.
Bitcoin has recently dropped to a two-month low due to several factors: uncertainty surrounding the U.S. presidential election, the upcoming repayment of funds by Mt. Gox, and selling pressure from struggling cryptocurrency miners.
Mt. Gox, which was once a prominent cryptocurrency exchange before its collapse in 2014, is preparing to commence repayments to its creditors. This has raised concerns that the influx of Bitcoin into the market could further push down prices as creditors might sell their recovered funds immediately.
Cryptocurrency miners are facing financial strain, with daily miner revenue declining by 75% since the halving event in April. Consequently, miners are selling their Bitcoin holdings to cover expenses, contributing to the overall selling pressure.
Despite the current market downturn, some analysts are optimistic about Bitcoin’s long-term prospects. Market analyst Tony Sycamore views this as a consolidation phase, suggesting that Bitcoin could test its March highs and potentially reach $80,000.
Nevertheless, the short-term outlook remains uncertain. Investors will be monitoring closely for any signals from the Federal Reserve that might impact the cryptocurrency market.
At the time of writing, Bitcoin is being traded at $56,797, reflecting a drop of over 20% in the last 30 days. Further news and updates on Mt. Gox repayments and the German BTC sell-off are eagerly awaited amidst the prevailing bullish sentiment around Bitcoin.