Lookonchain reported the German government transferred 3,000 BTC out of its portfolio.
1,300 units of the transferred BTC went to three centralized exchanges.
The recent crypto selloff has led to a 9.11% drop in the total crypto market cap.
The German government has reportedly moved a significant amount of Bitcoin from its holdings, raising questions about its investment strategy and potentially adding to recent downward pressure on the cryptocurrency’s price.
On-chain analytics platform Lookonchain revealed that 3,000 BTC, valued at $174 million, were transferred, with a significant portion distributed among major crypto exchanges Bitstamp, Coinbase, and Kraken. The latest transfer leaves the government with 40,359 Bitcoins, equivalent to $2.33 billion in its holdings.
The German Government transferred 3,000 $BTC($174M) out again, of which 1,300 $BTC($75.5M) was transferred to #Bitstamp, #Coinbase and #Kraken.German Government currently holds 40,359 $BTC($2.33B).https://t.co/x0aJljKn2C pic.twitter.com/Bk6oDEmGOa
— Lookonchain (@lookonchain) July 4, 2024
Lookonchain’s latest report detailed the series of Bitcoin transfers linked to the German government over the past few days. Notably, the bulk of the transfers were directed to centralized exchanges, suggesting the government may be selling Bitcoin. The transfers also coincided with an ongoing slump in Bitcoin’s price, potentially indicating significant bearish pressure on BTC.
Crypto traders traditionally transfer digital assets to CEXs to exchange them for other cryptos or fiat currencies. Exchanges for other cryptos would reflect a bullish trend on the affected cryptocurrency. On the other hand, selling significant amounts of Bitcoin or other digital assets for fiat can create a bearish trend that impacts the entire crypto market. The recent pressure is evident across the cryptocurrency market, with most coins and tokens losing significant value.
Data from TradingView shows that the total market cap of cryptocurrencies dropped from a $2.297 trillion high on Monday to $2.092 trillion as of the time of writing. That reflects a 9.11% drop in the crypto market cap in the past four days. Incidentally, the German government’s Bitcoin selloff is happening amid reports that the defunct crypto exchange Mt. Gox is preparing to reimburse creditors.
Bitcoin traded at $57,633 at the time of writing after dropping below $60,000 for the third time in less than two weeks.
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