In this ongoing struggling cryptocurrency market, where the government of Germany since June 19, 2024, is continuously dumping Bitcoin (BTC) and changed the overall market conditions. Today on July 12, 2024, an on-chain analytic firm lookonchain made a post on X stating that the Government of Germany has transferred out 10,627 BTC worth $615.3 million, and received 4,169 BTC, worth $239.6 million in the last 24 hours.
Germany continues to BTC sell-off
This report by lookonchain gained massive attention from investors and traders. Following this dump, the Bitcoin index falls to extreme fear for the first time since January 2023, as Bitcoin fails twice to breach $60,000.
This movement suggests that the government may have sold 6,458 BTC, totaling $375.7 million. Following these transactions, the German government’s current Bitcoin holdings stand at 9,094 BTC, valued at approximately $522.29 million.
Update:In the past 24 hours, the #German government wallet transferred 10,627 $BTC($615.3M) out and received 4,169 $BTC($239.6M).The #German government may have sold 6,458 $BTC($375.7M) and currently holds 9,094 $BTC($522.29M).https://t.co/xVx7LYG1QR pic.twitter.com/FyPuoKsgxS
— Lookonchain (@lookonchain) July 12, 2024
The Bitcoin index is an index that is used by traders and investors to see the market sentiment but this time it falls to 25, the lowest since January last year. This index fell when Germany in two consecutive days dumped more than 10k BTC. Additionally, Bitcoin fails to breach the $60,000 level.
Justin Bennett, a prominent crypto and forex trader, alerted on July 11, 2024, that Bitcoin had once again been rejected at $60,000, citing a potential “rising wedge” formation that suggests further price declines in the near future.
Recent negative sentiment is partly attributed to Mt. Gox beginning to repay creditors on July 5, potentially injecting up to $8.5 billion worth of Bitcoin into the market. Further downward pressure came from reports of significant Bitcoin sales by the German government, transferring 16,254 BTC worth $935 million to market makers and exchanges in recent days.
Bitcoin market-performance analysis
As of writing, BTC is trading near $56,900, and in the last 24 hours, it experienced a 1% price drop. Whereas, in the same period trading volume surged by 8%, signaling investors and traders participation. If we look at the performance of BTC over a longer period, in the last 7 days, it experienced a 3% price surge. Whereas, in the last 30 days, BTC experienced a 16% price drop.
Besides BTC, other cryptocurrencies including Ethereum (ETH), Solana (SOL), BNB (BNB), and Dogecoin (DOGE) have experienced a fall of over 0.2%, 3%, 0.5%, and 1.5% respectively in the last 24 hours.