The German government has significantly stepped up its Bitcoin sell-off, with recent reports from Arkham Intelligence indicating the sale of an additional 547 Bitcoins today. This disposal has brought Germany’s total Bitcoin reserves down to 41,220, currently valued at around $2.27 billion.
The trend of selling has been ongoing, with the government strategically moving Bitcoin across various wallets and major cryptocurrency exchanges such as Kraken, Bitstamp, and Coinbase.
Internal Criticism and Strategic Concerns
This vigorous trading activity has sparked internal criticism from some German officials. Notably, German lawmaker Joana Cotar has expressed her disapproval of the government’s strategy.
Cotar argues that these sales may be counterproductive, especially at a time when the United States is contemplating the inclusion of Bitcoin as a strategic reserve asset.
Source: Joana Cotar
Despite her concerns, which have been communicated to influential figures including Saxony’s Minister-President Michael Kretschmer, Finance Minister Christian Lindner, and Chancellor Olaf Scholz, the government has continued with its transactions.
In the initial days of July alone, the German government has transferred approximately 4,000 Bitcoins. This action, combined with the Mt. Gox repayment, has triggered panic selling in the market.
Data from IntoTheBlock shows that more than 30,000 Bitcoins have been transferred to exchanges in just this week, contributing to market volatility.
Market analysts are debating whether these government-led sell-offs are influencing Bitcoin’s price corrections. Bitcoin advocate Samson Mow has identified a pattern in the market, suggesting suppression tactics.
According to Mow, these suppression activities usually begin between 10-11 AM in Asia and 10-11 PM in New York, indicating a possible coordinated effort during overlapping market hours.
Mow has also observed a reversal in the movement of Bitcoin, from exchanges back to private wallets, which he interprets as a sign that it might not be the appropriate time for selling.
He speculates that this pattern could be part of a broader strategy by certain entities to manipulate the Bitcoin price downwards, timed with significant movements from larger holders. This could potentially trigger a series of liquidations and forced selling.
US Government and Whale Activity
The United States has also been active in the Bitcoin market, transferring substantial holdings.
Arkham Intelligence noted that a U.S. government wallet recently moved 237 BTC, funds that were originally confiscated from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin, who were implicated in a significant crypto fraud scheme.
Additionally, the current selling pressure on Bitcoin is not only from government actions but also from private large holders, known as whales.
In addition to the #German Government, #US Government and #MtGox selling $BTC recently, whales are also selling $BTC!2 whales have deposited 9,301 $BTC($563M) to #Binance since June 27, which also caused the $BTC price to fall.Address:1J22CPni1EsmT15A9qveydfWMoPMRw9Lp3… pic.twitter.com/fAH1FR86XD
— Lookonchain (@lookonchain) July 5, 2024
The blockchain analytics platform Lookonchain spotted two whale addresses that transferred 9,301 BTC to the exchange Binance on June 27, which significantly impacted the Bitcoin prices. This instance is just one among several recent whale activities that have roiled the market.
Whale Alert reported a massive transfer of approximately $3 billion in BTC involving multiple transactions. Spot On Chain confirmed that in the latest of these transactions, a whale moved 1,700 BTC valued at around $99.9 million to Binance.
This transaction coincided with a dip in Bitcoin’s price to $57,000, exacerbating investor anxieties. After the transfer, this whale’s balance stood at 4,368 BTC, valued at about $256 million at the time, but with the recent decline in Bitcoin prices, the value has dropped to approximately $242 million.
These vast movements of Bitcoin in recent weeks underscore a turbulent period for the cryptocurrency market.
With $1.2 billion worth of Bitcoin sold through brokers and exchanges in just two weeks, it’s clear that both governmental actions and maneuvers by private investors are contributing to the dynamic and often unpredictable nature of the market.
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