- The German government deposited 400 Bitcoins on Coinbase, Bitstamp and Kraken.
- 1,100 bitcoins were also sent to an unknown wallet.
- Bitcoin crashed from $63,200 to $62,800 at the same time.
The German government’s recent sale of 400 Bitcoins, worth nearly $95 million, has sparked criticism from the crypto community, who question the timing and strategy behind the move. This latest sale follows a previous offload of over 1,700 Bitcoins, further reducing the government’s substantial holdings.
According to a recent X post by The Data Nerd, the sale involved 100 BTC deposited on Kraken and 100 BTC on Coinbase, followed by 200 BTC on Bitstamp. Additionally, 1,100 bitcoins were also sent to an unknown wallet named “139Po.”
As alluded to, this follows a previous sale of over 1,700 BTC by the government, valued at $110 million. Despite the significant sell-offs, the German government’s wallet still holds around 44,692 BTC, worth around $2.8 billion at current market prices.
Users of the X platform criticized the government over this action. One user commented that the government fails to boost GDP but is selling its BTC stash, calling it a “horrible strategy.”
The recent offload impacted the price of Bitcoin. Within the past two hours, BTC fell from $63,200 to $62,800, according to CoinMarketCap data. Bitcoin has experienced a bearish summer, declining over 14% after reaching an all-time high of $73,750.07 in March.
This drop can also be attributed to potential liquidations by the creditors of the crypto exchange Gemini’s Earn product. The creditors received $2.18 billion in digital assets, mostly on May 29. The leading cryptocurrency crashed soon after, dropping to $69,000 from $71,000 on June 7, then to $67,000 on June 11, and was trading around $60,000 by June 24.
The Relative Strength Index (RSI) for Bitcoin reads 44.23, confirming that selling pressure exceeds buyers’ demand. However, this also presents good entry points for BTC.
Source: TradingView
The situation worsened with news of upcoming repayment by the bankrupt Tokyo-based Bitcoin exchange, Mt. Gox. The repayment, scheduled to begin in July, will involve the distribution of $9 billion worth of BTC to thousands of users.
Analysts at JPMorgan have stated that the heavy selling from Mt. Gox creditors could pose a “downside risk” for Bitcoin prices throughout July. However, they believe that Bitcoin will begin to gain momentum from August.
Notably, crypto analyst Ansem predicted sideways price action for Bitcoin and Solana throughout the summer of 2024. The digital assets will experience a potential “sideways consolidation before the next leg up,” Ansem said.
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