The German government has continued its Bitcoin dump spree, this time sending a staggering 1,000 Bitcoins to two popular cryptocurrency exchanges and one unidentified wallet. The continuous selling of Bitcoin by the government has contributed to the recent Bitcoin price decline as it has increased the selling pressure on the asset.
Despite legislative pushback, the German government has persisted with this ordeal that has negatively impacted the general crypto market. As investors hope for a better price trajectory ahead, these whale activities have delayed such expectations, and the market is now forced to adjust.
Another $55 Million in Bitcoin Shifted by the Government Agency
Earlier today, Lookonchain, a blockchain insight platform, informed the public that Germany’s central criminal investigation agency (BKA) moved 1,000 BTC, valued at $55.8 million from its cold wallet. According to the data, the government sends 250 BTC each, worth $13.95 million to the US-based crypto exchange Coinbase, and the Luxembourg-based exchange Bitstamp. The remaining 500 BTC, valued at $27.90 million was sent to an unknown wallet labeled “139P…ybVu.”
Source: Arkham Intelligence
Consequently, the government now holds a total of 38,621 BTC (worth approximately $2.22 billion). This brings its current holdings down by 11.90% from its June figure of 45,000 BTC. The German government’s activities in the Bitcoin market have called for major concern. On July 5, it sent 547 Bitcoins, worth $30 million, to Flow Traders and another 700 BTC to the same unidentified wallet involved in today’s transaction.
The day before, July 4, the government transferred $175 million in BTC to various exchanges sparking market reactions and speculations. These series of transfers affected the price of the asset as it dropped as low as $53k last week. Reacting to the sell-offs, Justin Sun, the founder of Tron, informed the public of his intentions to negotiate with the German government to reduce its dumping impact on the market.
According to him, he is willing to purchase all the available Bitcoins ‘off-market’ to reduce the high market disturbance the consistent sale has caused. While Sun’s proposal signals a possible solution to the disturbing volatility, the government is yet to respond to this, instead, it continues with its activities.
According to data from CoinMarketCap, the price of Bitcoin is currently trading at $56,239, representing a 0.96% drop from the last day. This is a notable increase from around $54,000 it traded during the weekend.
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