The German government has transferred 700 Bitcoin (BTC) worth approximately $40.47 million. The transaction is part of an ongoing trend in which governments have been consistently selling off their Bitcoin holdings since June.
German Bitcoin Liquidations Continue
According to blockchain data analytics platform Lookonchain, the German government has transferred an additional 700 BTC to cryptocurrency exchanges.
The country’s latest transaction has garnered mixed reactions on crypto Twitter, with some predicting that Bitcoin’s price could soon crash to the $40,000 range.
German authorities have been aggressively selling off their Bitcoin holdings, putting significant pressure on the cryptocurrency market. In recent weeks, authorities have been transferring large amounts of Bitcoin to various cryptocurrency exchanges.
Despite the recent big sell-off, the German government still holds 39,826 BTC, worth $2.29 billion. The move puts pressure on Bitcoin prices, which have fallen by more than 7% in the past seven days.
Since June 19, 17,788 BTC (approximately $1.08 billion) has been transferred via the German government, the US government, and the now-shuttered Mt. Gox exchange.
The German government has been transferring BTC every day since July 1. These institutions hold a total of 396,210 BTC, valued at $22.78 billion.
As of July 5, the German government holds 41,226 BTC worth $2.28 billion, the US government holds 213,297 BTC worth $11.72 billion, and Mt. Gox manages 141,687 BTC worth $7.78 billion.
For those who don’t know, the German government previously seized these bitcoins in various criminal investigations involving movie piracy sites, darknet markets, and other illegal activities. Initially, the government held an estimated 39,826 BTC, valued at $2.29 billion.
Bitcoin Price Faces Further Volatility
Bitcoin slumped to its lowest in two months due to a confluence of factors including uncertainty surrounding the U.S. presidential election, the impending repayment of funds by shuttered crypto exchange Mt. Gox, and selling pressure from struggling crypto miners.
Mt. Gox, a leading cryptocurrency exchange before it collapsed in 2014, is set to start paying back creditors, raising concerns that creditors may choose to immediately sell any funds they recover, potentially flooding the market with bitcoin and causing prices to fall further.
Cryptocurrency miners are also under financial pressure, with daily earnings for miners falling by 75% since the halving event in April reduced rewards. In response, miners have been selling their bitcoin holdings to cover costs, adding to the overall selling pressure.
Despite the current selloff, some analysts remain optimistic about Bitcoin’s long-term prospects. Market analyst Tony Sycamore said: I believe This is a period of consolidation and Bitcoin could retest the March highs and reach $80,000.
However, the short-term outlook remains unclear, and investors will be closely watching for dovish signals from the Federal Reserve that could boost the crypto market.
At the time of writing, Bitcoin is trading at $56,797, marking a price drop of over 20% over the past 30 days.
