German Government Shuffles Bitcoin, Sparking Selloff Fears

The currentinstability in the cryptomarket has triggered asurgesintransactionsasbothwhalesandinvestorsreshuffleassetstonavigatethedownwardmomentum.

A German government crypto wallet has moved hundreds of Bitcoins in the past 24 hours, sparking a frenzy across the industry.

Event Overview:

A crypto wallet called “German Government (BKA)” sparked a frenzy across the industry, with hundreds of Bitcoins being moved in various transactions between exchanges.

On June 25, on-chain intelligence provider Arkham Intelligence discovered a transfer of 400 BTC from wallets to crypto exchanges Coinbase (NASDAQ:COIN) and Kraken (CRKN) in two-part transactions. The transaction is worth approximately $24.4 million (at current prices) and occurred at approximately 07:38 UTC. This was followed by a transfer of 500 BTC, worth $30.5 million, to an anonymous address.

These Bitcoin (CRYPTO:BTC) transactions are not the only ones the German government has witnessed in recent weeks. They follow a previous transfer of $130 million worth of BTC six days ago. On June 20, 2024, another $65 million worth of BTC was transferred, and the wallet has since recovered approximately $20.1 million from Kraken and a total of $550 from crypto wallets associated with Coinbase, Robinhood (NASDAQ:HOOD), and Bitstamp Ten thousand U.S. dollars.

Despite the high number of recent transactions, the balance of Bitcoin wallets associated with the German government totals 46,359 BTC, which is worth approximately $2.8 billion at current prices. Frequent asset transfers have fueled fears of an imminent government sell-off, fueling fears of further BTC price declines.

BTC Price Trend:

BTC has been in a downward trend over the past month, hitting new price lows. Despite setting a new all-time high of $73,787 in early March, Bitcoin has struggled to sustain its upward momentum. The cryptocurrency giant also fell below its $60,000 support level on June 24, 2024, falling to $59,812 before rebounding back within the value range. The ongoing decline has affected exchange-traded products pegged to BTC, with the U.S.-based issuer losing around $584 million for six consecutive days.

Similarly, Bitcoin has also seen significant outflows in recent weeks, totaling about $1.2 billion in two weeks. At press time, Bitcoin was trading at $61,039, up 1% over the past 24 hours.

However, July may bring additional selling pressure to the Bitcoin market. Failed cryptocurrency exchange Mt.Gox has announced that it will begin returning funds to its closed users. More than $9.4 billion in Bitcoin is owed to some 127,000 creditors, who have been waiting more than a decade to get their money back. This expected allocation could have a significant impact on Bitcoin’s market dynamics.

Willy Woo, an analyst with more than 1.1 million followers, emphasized on June 22 that Bitcoin may experience a cooling period of one to four weeks. The analysis is based on technical chart patterns that suggest a potential correction may occur before Bitcoin’s price action stabilizes.

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