Markets
Transfer of 900 Bitcoins from Germany sparks crypto market speculation
The German government dumped a lot of Bitcoin by transferring over 900 Bitcoins in two separate transactions. Firstly, 400 Bitcoins worth almost $25 million were deposited on two different cryptocurrency exchanges, Kraken and Coinbase. Later, 500 Bitcoins were transferred to an unknown wallet address.
The government’s significant move has sparked interest and speculation in the crypto scene as whale activity has increased enormously recently.
Transfer of 900 BTC from Germany followed by a previous settlement of 1700 BTC
As reported by Blockchain monitoring service Arkham, the German government in transferring 400 BTC between Coinbase and Kraken, split the deposit of 200 BTC each to Kraken and Coinbase respectively. The total transfer value amounted to US$24.34 million. He later transferred 500 Bitcoins worth $30.42 million to the address 139Po…bVu, while the details of the receiving address are not yet known.
This transfer follows last week’s deposit of nearly 1,700 Bitcoins valued at $110 million on exchanges Kraken, Coinbase and Bitstamp.
Impact of the transfer on the price of Bitcoin
According to recent data, Germany’s Bitcoin holdings have grown significantly in value, worth a remarkable $2.82 billion, including $1.1 billion in unrealized profits. The massive sell-off by the German government, along with substantial outflows from spot Bitcoin ETFs and other market factors, may be contributing to the selling pressure that has pushed Bitcoin below $60,000.
Bitcoin has dropped recently and is currently trading at $61,276. The decline comes as outflows of $174.5 million were recorded from Bitcoin ETFs on June 24.
However, despite the selling, other large investors are buying during price drops. Recently, on June 20, Saylor’s Microstrategy purchased an additional 11,931 Bitcoin using proceeds from $800 million in convertible notes, highlighting contrasting approaches and different levels of trust within the crypto realm.
Investors’ faith in Bitcoin
The prevailing market uncertainty due to the Mt Gox sell-off and BTC ETF outflows is cause for concern. Although there is a bearish sentiment surrounding the price of Bitcoin, many traders and institutions strongly suggest that Bitcoin will soon be back on track, reaching the $100,000 mark by the end of 2024.