The German government continues to transfer Bitcoin, causing market panic
In the past month, the German government has continued to transfer hundreds of millions of dollars worth of Bitcoin, and the bankrupt exchange Mt. Gox also initiated compensation procedures in July, causing panic in the cryptocurrency market.
Market data shows that Bitcoin has fallen by 17.5% in the past 30 days, reaching a low of $53,485.
Source: CoinGecko Bitcoin price trend
Data from blockchain analytics platform Arkham shows that as of writing (16:00) on July 9, German government wallet addresses also held 26,053 Bitcoins, worth approximately $1.49 billion.
Source: Arkham
Arkham platform monitors that the German government still holds 26,000 Bitcoins
Has the German government sold more than 2 billion bitcoins recently?
According to "CNBC", in January this year, the German police announced that they had confiscated about 50,000 Bitcoins, which were illegally obtained investments in the pirated film and television platform Movie2k.to. The Bitcoins were subsequently transferred to a crypto wallet held by Germany’s Federal Criminal Police Office (BKA).
According to statistics from on-chain analyst Lookonchain, since June 19 this year, the German government has successively transferred 36,670 Bitcoins to exchanges or market maker addresses. In addition to the 1,408 Bitcoins transferred out earlier today, the total 38,078 coins have been transferred, worth more than $2.1 billion.
It should be noted that the Bitcoin transferred out by the German government will not necessarily be sold immediately, but may also be transferred back to the wallet a few hours later.
Foreign currency media "CoinDesk" pointed out that the current cryptocurrency market seems to be very sensitive to the actions of the German government. When US$900 million of Bitcoin was transferred out yesterday, the price fell to around US$55,000. This morning, US$200 million of Bitcoin was transferred. When it was transferred back to the wallet, Bitcoin was back above $57,000.
German MPs call on the government to stop selling coins!
"Crypto City" previously reported that German parliamentarian Joana Cotar issued a message on July 4 calling on the government not to rush to deal with Bitcoin. Further selling is an unwise decision and will be counterproductive and may affect the stability of the cryptocurrency market.
She further pointed out that the U.S. government has long regarded Bitcoin as a strategic reserve currency, while the German government’s selling behavior appears short-sighted and short-sighted. In 2023, the congressman proposed a bill to recognize Bitcoin as Germany's legal currency, but given the government's current actions, the current prospects for the bill's passage may be unclear.
Mt.Gox payouts and U.S. government holdings deserve attention
In addition to the German government, markets are currently focused on the impact of Mt. Gox paying off its creditors. Arkham data shows that Mt. Gox holds 140,000 Bitcoins and has recently begun transferring small amounts of Bitcoins. The selling pressure on Mt. Gox depends on whether creditors who have received compensation want to sell, and many experts have previously expressed this view.
Mt.Gox starts repaying money in July! 10 Q&A to dispel rumors, maybe you shouldn’t be afraid of selling pressure
The U.S. government is also a market whale to watch, currently holding a total of $12.6 billion worth of cryptocurrencies, including 210,000 Bitcoins, worth approximately $12.1 billion. From June 26 to July 7, the U.S. government transferred a total of approximately 4,000 Bitcoins.
Source: Arkham
Changes in U.S. government Bitcoin holdings
If you are curious about the Bitcoin holdings of the US, German governments and Mt. Gox, you can monitor them through the following channels:
Arkham German government address
Arkham US Government Address
Arkham Mentougou Exchange (Mt.Gox) address
