Cryptocurrency market continues to slump
Recently, the cryptocurrency market has continued to decline, with the price of Bitcoin ($BTC) once falling below $53,500 and a 15% correction in the past month. The situation of altcoins is even more disastrous.
Many people attribute the reasons behind the decline to 3 things:
U.S. Government Moves $240 Million in Silk Road-Related Bitcoin ($BTC) to Coinbase
Japanese exchange Mt. Gox begins repaying creditors
The German government sells Bitcoin for several days
In a market that has already continued to decline, the three major negative events have undoubtedly intensified investor panic. However, the good news is that the 50,000 Bitcoins obtained by the German government in January this year seem to have finally been sold out?
Transfer tens of thousands of Bitcoins again
According to blockchain data from Arkham Intelligence, the German government has sold a total of $376 million worth of Bitcoin in the past 16 hours. Bitcoin wallets related to the German authorities have sold them to cryptocurrency exchanges Bitstamp and Coinbase in batches within a day. Exchanges and market makers such as , Kraken, Flow Traders and Cumberland DRW sold 10,627 Bitcoins at an average price of US$57,976, worth approximately US$616 million, and recovered 4,169 Bitcoins at an average price of US$57,469, worth approximately US$240 million. Dollar.
Image source: Arkham Intelligence German Bitcoin holdings
As of the end of trading today, the German government has sold approximately 35,000 Bitcoins this week, and there are only 4,925 Bitcoins left in wallets related to the German government. At current prices, this is worth approximately US$285 million, which is the same as three weeks ago. This is a significant decrease from the total assets of 50,000 Bitcoins (worth nearly $3 billion) when the sale began.
This means that the German government’s Bitcoin sell-off will most likely end this week or early next week. However, due to the peculiar way the wallet operates, it receives portions from exchanges and brokers before the end of the transaction. Assets are transferred (sometimes in the range of $10 million), so statistical results may change.
Could Selling Pressure Be Exaggerated?
The German government’s selling spree is about to end, which may alleviate the concerns of cryptocurrency investors. However, NYDIG’s Cipolaro said in a report that the market is likely to “exaggerate” the German government’s selling pressure. From July 8 to 7 On March 10, the German government transferred nearly 19,148 Bitcoins to CEXs and market makers such as Kraken, Flow Traders, Coinbase, Bitstamp, Cumberland and B2C2 Group. However, the price of Bitcoin was not greatly affected during this period. .
Overall, as the sell-off is about to end, the market may usher in a wave of breathing space. The German government’s sell-off also lets us know that as more and more governments and institutions participate in cryptocurrency In the market, investors need to pay more attention to the movements of these large sellers, stay calm, respond to market changes rationally, and avoid being disturbed by market fluctuations.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
