In a bold move, the German government has once again made waves in the cryptocurrency market by transferring 1,000 Bitcoin early this morning. The value of this transfer amounts to a staggering $55.8 million. Out of this sum, 500 Bitcoin, equivalent to $27.9 million, has been deposited into two popular cryptocurrency exchanges, Bitstamp and Kraken, as reported by SpotOnChain, an on-chain analytics provider.
This recent transfer adds to the German government’s ongoing activity in the cryptocurrency market. Since June 20, they have moved a net total of 11,033 Bitcoin, valued at an impressive $669 million. The average price per Bitcoin in these transactions was $60,669. The impact of these large-scale transfers on the market has been significant, resulting in a drop in Bitcoin’s price from $62,000 to $54,000 over the past week. The transfer of $54 million in Bitcoin on June 20 and another 3,000 Bitcoin worth $174 million on July 4 have been specifically attributed to the recent market downturn.
These continuous transfers have raised concerns among investors and market observers. Justin Sun, the founder of Tron, has publicly expressed his willingness to purchase all of the German government’s Bitcoin holdings off the market to mitigate any further negative effects on the market. However, there has been no response from the German government regarding this offer.
Despite the transfers, the German government still holds a substantial amount of Bitcoin. According to SpotOnChain, they currently possess 38,826 Bitcoin, valued at approximately $2.16 billion. The ongoing selling activity of such a large holder has sparked questions about the future stability of the market and potential strategies to manage the impact of these significant Bitcoin transfers on market prices.
Given their significant holdings and continued transactions, the crypto market is closely monitoring the German government’s next moves. Further liquidations could continue to have an impact on the price of Bitcoin and overall market sentiment.