The German government sent 700 Bitcoins (BTC), which are worth about $40.47 million, which is another big move in the cryptocurrency market. Part of an increasing trend, the government has been selling off its Bitcoin holdings steadily since June. This move is part of that trend.
Lookonchain, a blockchain data analytics tool, says that the German government has sent these 700 BTC to different cryptocurrency exchanges. This has caused a lot of mixed reactions on crypto Twitter. Some experts think this could cause the price of Bitcoin to drop to around $40,000.
The aggressive selling by the German government has put a lot of pressure on the cryptocurrency market. A lot of Bitcoin has been moved to swaps in the past few weeks, which has made the market more volatile. Even with these significant sales, the German government still has 39,826 BTC, which is worth about $2.29 billion. BTC’s value has dropped more than 7% in the past week.
Daily Bitcoin Transfers Continue
A total of 17,788 BTC, or $1.08 billion, has been moved between the German government, the U.S. government, and the now-defunct Mt. Gox exchange since June 19. There have been daily BTC payments by the German government since July 1. These groups hold a total of 396,210 BTC, which is worth $22.78 billion.
Berlin’s government has 41,226 Bitcoin worth $2.28 billion as of July 5. The U.S. government has 213,297 BTC, which is worth $11.72 billion, and Mt. Gox has 141,687 BTC, which is worth $7.78 billion.
Initially, the German government took these Bitcoins away during a number of criminal investigations. These included cases involving sites that pirate movies, dark web markets, and other illegal activities.
Other things that are putting downward pressure on the market are the uncertainty surrounding the U.S. presidential election, the fact that Mt. Gox is about to repay funds, and the fact that bitcoin miners are having a hard time making ends meet.
Before it went bankrupt in 2014, Mt. Gox was the largest digital currency exchange. Now, it’s going to start paying back its debts, which is making people worry that this could lower prices even more as debtors sell their recovered funds.
Miners of cryptocurrencies have seen a 75% drop in daily profits since the April event, which caused them to sell their Bitcoin stocks to cover costs. This has made it even more important to sell.
Some analysts are still optimistic about Bitcoin’s long-term chances, even though the price is going down at the moment. Tony Sycamore, a market analyst, thinks that this is a time of consolidation. He thinks that Bitcoin could test its March highs again and even hit $80,000.
But the short-term picture is still not clear. Investors are keeping a close eye on the Federal Reserve for any “dovish” signs that could help the cryptocurrency market.Bitcoin has lost more than 20% in value in the last 30 days and is now selling at $56,797.
