[The German government’s Bitcoin transfers also continued this week, with another 1,000 Bitcoins transferred]
The German government has made another major move on the cryptocurrency market, moving 1,000 Bitcoin (approximately $55.8 million) this morning. According to the latest post from SpotOnChain, 500 of those Bitcoins (approximately $27.9 million) have been deposited into the Bitstamp and Kraken exchanges.
Since June 20, the German government has transferred a net worth of 11,033 Bitcoins (approximately $669 million), at an average price of $60,669 per Bitcoin. These massive transfers significantly impacted the market, causing Bitcoin prices to fall from $62,000 to $54,000 over the past week. On June 20, the German government moved $54 million worth of Bitcoin, and on July 4 it moved another 3,000 Bitcoin worth $174 million. These transfer activities are widely considered to be the main reason for the recent market decline.
These ongoing shifts are causing concern among investors and market observers. Tron founder Justin Sun has publicly stated that he is willing to purchase all the German government’s Bitcoin holdings off-chain to mitigate further negative impact on the market. Despite his offer, the German government has yet to respond.
According to data from SpotOnChain, the German government still holds 38,826 Bitcoins, approximately $2.16 billion. Continued selling activity by such large holders raises questions about future market stability and potential strategies for managing the impact of large-scale Bitcoin transfers on market prices.
With these large holdings and continued trading, the cryptocurrency market is keeping a close eye on the German government’s next moves, as further liquidations could continue to impact Bitcoin’s price and overall market sentiment.
