According to Arkham data, the German government transferred a total of 16,039 Bitcoins yesterday, with a total value of more than 900 million U.S. dollars. Due to the sudden increase in selling power, and the fact that the German government still holds more than 2 billion U.S. dollars in Bitcoin, it triggered a panic in the Bitcoin secondary market and exacerbating the downward price trend.

However, just early this morning, the German government unexpectedly withdrew nearly 3,000 Bitcoins from Kraken, Coinbase, Bitstamp and other exchanges, leaving the market confused.

In this regard, Steven Cheng, research director of The Block, believes that these exchanges are likely to send Bitcoin back to German wallet addresses because they cannot sell Bitcoin within the target price range:

“Given that some Bitcoins were sent back to the German government from Coinbase, we can assume that they were Bitcoins that were unsuccessfully sold, possibly as part of a sales agreement between the cryptocurrency exchange and the country.”

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