【Government selling BTC incident】
In addition to the Mentougou incident, the most panicked thing recently is the US and German governments selling BTC incident.
Compared with whales, the position represented by the government and the amount of BTC held are far greater than that of individuals.
Let's take a look at Baldy's opinion on this matter:
1. Background of the incident
On June 21, the address marked as "German government" by Arkham was suspected of selling Bitcoin. The address has transferred 1,700 Bitcoins to Coinbase, Kraken and Bitstamp in the past two days;
On June 27, the US government transferred 4,000 Bitcoins to Coinbase.
2. Event Analysis
(1) Government departments are generally limited by their national stance. When they want to sell BTC, they usually do so through OTC transactions instead of exchanges;
(2) The Coinbase that the US government transferred to is Coinbase Prime, which is aimed at institutional investors, so it may just be a transfer, not a sale; this may also be the case for the German government;
(3) Even if the government wants to sell, this amount is not much different from the outflow of ETFs;
(4) Ultimately, what is important is that the negative news you can see is what they want you to see, so don't short blindly.
3. If we look at the amount of BTC held by various governments, you will find that this amount of selling is too small.
As shown in the figure.
