Key Points:
German government Bitcoin selling causes holdings to under $1 billion with recent transfers totaling over $520 million.
These sales coincide with concerns over Mt. Gox creditor repayments and transfers, contributing to Bitcoin's recent daily decline.
In recent weeks, the German government Bitcoin selling has had quite a negative impact on the cryptocurrency market.
German Government Bitcoin Sales Impact Markets
According to Arkham, the German government Bitcoin holdings have been greatly reduced, which now stands at less than $1 billion. Researchers noted another substantial movement of funds associated with the government's wallet, indicating ongoing sales of confiscated Bitcoins.
Arkham reported that 3,000 BTC, valued at $176.26 million, were transferred to Flow Traders, a trading company. In total, 8,853.5 BTC worth $520.17 million were moved in a single day. Currently, the German government holds 15,110 BTC, equivalent to $883.7 million.
The previous day saw the German authorities execute several significant transactions: 5,000 BTC worth $293.77 million were sent to domestic accounts, and 1,500 BTC ($88.31 million) were moved to an unknown address. These sales began last month, with Bitcoin being sold from a wallet operated by the Bundeskriminalamt (BKA), Germany's Federal Criminal Police Office.
Analysts Monitor Strategies Amid Market Fluctuations
Many analysts utilize the Arkham platform to track these transactions, speculating that the sales strategy may aim to mitigate confiscations and integrate digital assets into the economy. However, the German government Bitcoin sales aren't the only factor concerning crypto investors. The market is also under pressure from the payout of billions of dollars' worth of digital currency from the collapsed Mt. Gox exchange to its creditors.
Last Friday, Nobuaki Kobayashi, the trustee for the Mt. Gox bankruptcy estate, announced the commencement of repayments in Bitcoin and Bitcoin Cash to creditors through various designated crypto exchanges. The development, along with transfers related to the U.S. government, has led to fears of imminent large-scale sales, affecting over $20 billion worth of cryptocurrency.
As of July 11, 2024, Bitcoin is trading at $57,200, a 1.75% decrease in the last 24 hours, and over 15% lower than its value 30 days ago.
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