This week didn’t start on a high note for crypto traders as most altcoins are down. Bitcoin is not performing well either, with the BTC price again plunging below $56k before quickly reclaiming this level.
But what’s causing this downturn again?
German Government Prepares for Another Bitcoin Sale
LookOnChain reported that the German government transferred out 1,000 BTC (equivalent to around $56 million) this morning.
Exactly half, or 500 BTC, was transferred to Coinbase and Bitstamp.
The #German government transferred 1,000 $BTC($55.8M) out again 15 minutes ago, of which 500 $BTC($27.9M) was deposited to #Coinbase and #Bitstamp.The #German government currently holds 38,826 $BTC($2.17B).https://t.co/h2JlBVFPsL pic.twitter.com/NS5pkMixrj
— Lookonchain (@lookonchain) July 8, 2024
However, they still currently hold around $2.17 billion in Bitcoin. It appears they are preparing for a sale, again.
They also transferred out 700 BTC this weekend. These moves suggest that the German government may be liquidating some of its Bitcoin holdings, which could contribute to downward pressure on the price.
Read also: Starknet Announces The Biggest Community Event – STRK Price Pump Coming?
Analyst Still Positive on Bitcoin Price
Analyst Jelle shared his thoughts on the current Bitcoin situation:
“Bitcoin has confirmed a higher-timeframe lower low, meaning the uptrend we were in for the past 18 months is under pressure. If it reclaims this level quickly, we can act like it never happened. Until then, caution is advisable.”
He also noted that Bitcoin is testing the weekly RSI midlevel, which has historically acted as key support and resistance. This could indicate that a bounce may occur soon.
#Bitcoin is testing the weekly RSI midlevel – which has historically acted as key support & resistance.Looks like it's time for a bounce soon. pic.twitter.com/zk2GeKZCrj
— Jelle (@CryptoJelleNL) July 8, 2024
Conclusion
Look, the crypto market’s been a wild ride lately. With the German government potentially offloading some BTC and prices taking a hit, it’s easy to feel a bit jittery.
But here’s the thing – we’ve seen this before. Bitcoin’s had its ups and downs, and somehow it always seems to find the positive momentum.
Don’t forget that not only BTC ETFs are approved and trading, but ETH ETFs are also about to start trading this month.
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