July 24, 2024
Bitcoin News

German Government Sells $52M Bitcoin, Raising Market Concerns

A cryptocurrency wallet associated with the German government has recently sold $52 million worth of Bitcoin, sparking suspicions about the government’s intentions to liquidate its significant Bitcoin holdings. On July 2, the wallet transferred 832.7 Bitcoin across four transactions.

According to Arkham Intelligence data, 100 BTC was sent to Coinbase, 150 BTC to Bitstamp, and over 32 BTC to Kraken. The largest transfer, 550 BTC worth over $32 million, was sent to an unknown wallet labeled “139Po,” which has previously received funds from the government.

Potential Impact on Bitcoin Price

Tracking the selling patterns of large Bitcoin holders like the German government can provide investors with insights into potential price movements. Large sell orders can create downward pressure on Bitcoin’s price.

The German government wallet, labeled by the BKA, poses a threat to Bitcoin’s price. This is due to its substantial holdings of over 43,850 BTC, worth more than $2.75 billion.

Bitcoin has been in a downtrend since early June, falling over 7.3% in the past month. The price found a local bottom above $58,450 on June 24 before bouncing back above $62,000, according to Bitstamp data.

BTC/USD 1-month chart. Source: TradingView

Market Reactions and Future Outlook

The recent transfers to centralized exchanges indicate that the German government may be preparing to sell more Bitcoin. The wallet first raised suspicions on June 19 with a 6,500 BTC transfer worth over $425 million. Before this, the wallet held nearly 50,000 BTC since February 2024, believed to be seized from the Movie2k pirated movie website operator.

Bitcoin has strong support at the $61,500 mark. But a move below this level could liquidate over $1 billion in leveraged long positions across all exchanges, according to Coinglass data. The market remains watchful of further movements from the government-labeled wallet.

Bitcoin exchange liquidation map. Source: Coinglass

Image by starline on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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