The German government has made another significant move in the cryptocurrency market by transferring 1,000 Bitcoin (valued at $55.8M) early morning today. Out of this, 500 BTC ($27.9 million) has been deposited to popular cryptocurrency exchanges Bitstamp and Kraken, according to a recent tweet by on-chain analytics provider SpotOnChain.
Continual Large-Scale Movements and Their Market Repercussions
Since June 20, the German government has transferred a net total of 11,033 BTC (worth $669 million) at an average price of $60,669 per BTC. These substantial transfers have noticeably affected the market, causing Bitcoin’s price to drop from $62,000 to $54,000 over the past week. On June 20, $54 million in Bitcoin was transferred, and on July 4, another 3,000 BTC worth $174 million was moved. These movements have been largely blamed for the recent market downturn.
The ongoing transfers have prompted concerns among investors and market watchers. Tron Founder Justin Sun has publicly offered to purchase all of the German government’s Bitcoin holdings off-chain to mitigate further negative impacts on the market. Despite his offer, the German government is yet to respond.
Current Bitcoin Holdings
As per SpotOnChain, the German government still holds 38,826 BTC, valued at approximately $2.16 billion. The continued selling activity by such a large holder has raised questions about future market stability and potential strategies to manage the influence of large-scale Bitcoin transfers on market prices.
With these significant holdings and ongoing transactions, the crypto market is closely watching the German government’s next moves, as further liquidations could continue to impact Bitcoin’s price and overall market sentiment.
