In a bold move, the German government has once again made its presence felt in the cryptocurrency market by transferring 1,000 Bitcoin, which is valued at a staggering $55.8 million. This transfer took place earlier today, with 500 Bitcoin, amounting to $27.9 million, being deposited into popular cryptocurrency exchanges Bitstamp and Kraken. The news was shared by SpotOnChain, an on-chain analytics provider, through a recent tweet.
This recent transfer is part of a series of significant movements made by the German government since June 20. During this period, they have transferred a net total of 11,033 Bitcoin, worth an impressive $669 million, at an average price of $60,669 per Bitcoin. The impact of these substantial transfers on the market has been undeniable. Bitcoin’s price has experienced a notable drop, falling 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, amounting to $174 million, on July 4, have been largely attributed to the recent downturn in the market.
These continuous transfers have raised concerns among investors and market observers. Justin Sun, the founder of Tron, has even gone as far as to publicly offer to buy all of the German government’s Bitcoin holdings off the market to prevent further negative effects on the market. However, the German government has yet to respond to this proposal.
Despite the recent transfers, the German government still holds a substantial amount of Bitcoin. According to SpotOnChain, their current holdings stand at 38,826 Bitcoin, valued at approximately $2.16 billion. The ongoing selling activity by such a significant holder has sparked questions regarding future market stability and potential strategies to manage the impact of large-scale Bitcoin transfers on market prices.
With the German government’s significant holdings and ongoing transactions, the crypto market is eagerly watching their next moves. Further liquidations could continue to influence Bitcoin’s price and overall market sentiment.