The German government has transferred another stash of Bitcoin to major cryptocurrency exchanges. This action, occurring amidst a broader market downturn, has raised questions about its potential impact on Bitcoin’s price.
Breaking Down the Bitcoin Transaction
According to blockchain intelligence firm Arkham, the German government moved a total of 1,300 BTC to Bitstamp, Coinbase, and Kraken at 16:25 UTC+8 today.
UPDATE: German Government selling up to $175M BTC
In the past 2 hours the German Government has moved 1300 BTC ($76M) to exchange deposits at Kraken, Bitstamp and Coinbase.
They have also moved 1700 BTC ($99M) to address 139Po. These funds are likely moving to a deposit for an… pic.twitter.com/ZMTxoipo5d
— Arkham (@ArkhamIntel) July 4, 2024
The transfer, worth approximately $75.53 million, marks the largest movement to centralized exchanges (CEX) in recent times. The breakdown of the transfer shows 400 BTC sent to Coinbase, another 400 BTC to Kraken, and 500 BTC to Bitstamp.
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Additionally, Arkham reported that the government moved 1,700 BTC ($99M) to an address labeled “139Po.” They speculated that these funds might be headed for an institutional service or over-the-counter (OTC) trading.
Market Reaction to Bitcoin Transfer
This large-scale movement of Bitcoin coincides with a major dip in the cryptocurrency’s price. Bitcoin is currently trading at the $57,000 level, down 4.8% in the last 24 hours.
The downward trend extends further, with Bitcoin showing a 5.3% decrease over the past week and a 16.3% slump over the past month.
While it’s challenging to attribute the price movement solely to the German government’s actions, such large transfers often influence market sentiment and liquidity.
Despite this substantial transfer, the German government still holds a large amount of Bitcoin. Arkham reports that 40,359 BTC ($2.3B) remains in tagged addresses on-chain. This suggests that this sell-off represents only a fraction of their total holdings.
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Also Read: Bitcoin Price Drops Below $60,000: BTC Weekend Projections
