Bitcoin (BTC) and the broader crypto market are liable to a additional downtrend following a current improvement involving the US and German governments.

On-chain information means that each governments wish to offload a considerable quantity of their BTC holdings.

Bitcoin (BTC) and the broader crypto market are facing additional selling pressure as recent developments indicate that the US and German governments are looking to offload significant amounts of their BTC holdings.

On-chain data reveals that the US government has moved 3,940 BTC ($240 million) to Coinbase Prime. On-chain analytics firm Arkham Intelligence shared this detail in an X (formerly Twitter) post. This development has sparked speculation that the government may be preparing to sell these crypto tokens, which could put further downward pressure on the flagship crypto.

Arkham also revealed that this BTC was part of the seizure from narcotics trafficker Banmeet Singh following his trial earlier this year. Notably, Singh is known to have sold drugs via the Silk Road marketplace, a dark web platform from which the US government is also known to have confiscated substantial amounts of Bitcoin.

The US government has, in the past, sold some of the Silk Road BTC, which also led to significant selling pressure for the flagship crypto. Their last confirmed sale was in March when they sold 9,861 BTC ($216 million). They are yet to confirm the sale of the 3,940 BTC that was moved to Coinbase, which suggests that it has not yet been sold.

Meanwhile, the US government is not the only entity looking to add to the selling pressure in the market. Data from Arkham Intelligence also shows that the German government recently moved 125 BTC ($7.71 million) each to crypto exchanges Kraken and Bitstamp. This follows their recent transfer of 400 BTC ($24 million) to Kraken and Coinbase. On the other hand, the German government also moved 1,000 BTC to an unknown address (139Po), which could be another crypto exchange.

The potential Bitcoin sale from the US and German governments is particularly concerning, considering that Bitcoin is already facing immense selling pressure as it is. Bitcoinist recently reported that BTC miners have sold 30,000 BTC ($2 billion) this month alone, largely contributing to the crypto’s massive decline since the month began.

Another Government Prefers To Hodl

As the US and Governments continue to sell their Bitcoin holdings, another government, El Salvador, has instead chosen to keep accumulating the flagship crypto. El Salvador is known to have adopted Bitcoin as a legal tender since September 2021 and began a ‘1 Bitcoin a day program’ in November 2022, through which they purchase 1 BTC each day.

Data from Arkham Intelligence shows that they have stuck to this policy and currently hold 5,794 BTC ($351.82 million). El Salvador has also continued to accumulate through foreign investments and its mining operations. Bitcoinist recently covered the government’s plans to launch a Bitcoin bank to attract foreign investors with frictionless Bitcoin investment.

Featured image created with Dall.E, chart from Tradingview.com

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