Arkham, a prominent blockchain analytics firm, has recently disclosed a huge Bitcoin transfer that the German government has conducted. As per the platform, the government has recently sent another huge amount of 5,200 Bitcoin to several crypto exchanges taking into account, Coinbase, Bitstamp, Kraken, and a wallet “139Po.” The platform took to its official social media account on X to provide the details of this move.
The German Government sent another 5200 BTC ($297.3M) to Kraken, Bitstamp, Coinbase and 139Po right after we posted this tweet. That makes this the biggest day for them so far – over 16,000 BTC in total. They currently hold 23,787.7 BTC ($1.35B). Less than half of the BTC… pic.twitter.com/tO7r0J0w08
— Arkham (@ArkhamIntel) July 8, 2024
German Authorities Send Additional 5200 BTC to Several Crypto Exchanges
In its exclusive X post, the firm labeled the transfer the biggest single-day sale that the German government has made. This brings the cumulative sold Bitcoin tokens on the respective day to mm more than 16,000 BTC. Firstly, the authorities seized a vast BTC amount from Movie2k which operated as a famous piracy website. They owned 50,000 BTC at their holdings’ peak.
As a result of the exclusive transfers, their present balance has touched 23,787.7 BTC (equaling $1.35B). This indicates that the 50% of the BTC that the authorities initially took from the piracy website remains. Bitcoin’s large-scale selling by the government has diverse implications regarding the crypto market. This type of substantial sales can reportedly put downward pressure influencing the price of Bitcoin.
Such scenarios particularly emerge when these sales are conducted within a limited timeframe. Bitcoin’s sheer volume is going to exchanges like Coinbase, Bitstamp, and Kraken to potentially result in heightened selling pressure. This can likely cause significant volatility within the crypto market. At present, the price of the chief crypto token is already going under pressure. Another factor behind this is the engagement of the US authorities.
US Government Also Engages in BTC Sales, Raising Several Concerns
The US authorities have additionally been selling the BTC that they seized. Keeping all these things in view, several concerns are rising. Moreover, the community members are also apprehensive about the likely big distributions that the Mt. Gox estate will execute. These factors mutually contribute to a restrained sentiment among investors and traders.
A noteworthy thing here is that these sales, despite influencing the current market situation, cannot change the crypto trends in the long run. Although these sales signify short-term challenges, Bitcoin’s overall long-term outlook still depends on a diverse group of factors broader than such government actions.