The German government recently transferred 500 Bitcoin (BTC) amid a sharp market decline, with the BTC price falling to $54,000. This move has sparked fears of an accelerated market crash. Moreover, the Mt. Gox collapsed crypto exchange has started repaying its creditors in Bitcoin and Bitcoin Cash (BCH), further exacerbating FUD in the market.
Inside German Government’s Latest Bitcoin Transfer
According to Arkham Intelligence, the transfer was made to a wallet address, 139Po…, known for handling the German government’s Bitcoin transactions. Moreover, this wallet often receives BTC from the government and transfers it to other wallets. This can lead to significant sell-offs on crypto exchanges. Currently, the German government wallet holds 41,774K BTC worth a staggering $2.26 billion.
Earlier, on July 4, the German government offloaded 1,300 BTC to popular crypto exchanges. Data from Arkham showed that this sale totaled nearly $76 million. The Bitcoin price dropped below $58,000 shortly after this large liquidation and the trend has continued.
In Thursday’s transfer, the German government moved 500 Bitcoin, valued at $29.05 million to Bitstamp. Additionally, they sent 400 BTC valued at $23.24 million each to Coinbase and Kraken. Moreover, the government moved 1,700 BTC worth $98.76 million to the wallet used in the latest transaction.
This sparked speculation of an impending sell-off, as this wallet is often used for further BTC offloading. The 1,700 BTC was then transferred from this wallet to another wallet. Moreover, the wallet also shifted today’s 500 Bitcoin, worth $27.07 million, to the wallet address, bc1q7…., which has also been involved in the German government’s Bitcoin dump.
However, these transactions have led to concerns that the government’s actions could cause a more significant market downturn. On the contrary, the government had retrieved 1,570 Bitcoin transferred on Thursday. Out of this, 545 BTC was withdrawn from Coinbase, Bitstamp, and Kraken. Nonetheless, this withdrawal didn’t have a positive impact on BTC.
Amid these Bitcoin transactions, Tron founder Justin Sun made an informal offer to the German government. In a post on X, he wrote, “I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.”
Also Read: Breaking: German Govt Unloads Another 1300 Bitcoin To Coinbase, Kraken & Bitstamp
What’s Next For BTC Price?
Earlier, the Bitcoin price had dropped below $54,000 as the crypto market reacted to several significant events. These include German government’s recent sale of Bitcoin and the commencement of the long-anticipated Mt. Gox repayments. The collapsed exchange recently released 3,000 BTC into the market. This transfer has heightened concerns about further declines.
Moreover, in the past month, Bitcoin whales have offloaded over 30,000 BTC, amounting to $1.8 billion. This mass selling has also contributed to the bearish sentiment. Peter Schiff, a well-known Bitcoin skeptic, highlighted the struggles of Bitcoin ETF investors.
He suggested that if the BTC price drops below $38,000, it could trigger a wave of selling from disheartened investors. Schiff had previously predicted a major crash coinciding with the Mt. Gox repayments, which has come true now.
The market is also feeling the impact of substantial liquidations. According to Coinglass data, Bitcoin longs have liquidated nearly $300 million, adding to the downward pressure. Despite the bleak outlook, some industry experts remain hopeful. Nischal Shetty, founder of WazirX, offered a more optimistic perspective, suggesting that the current challenges could be temporary.
Also Read: German Lawmaker Wants Government To HODL Bitcoin (BTC), Not Sell
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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