German Government Dumps 1300 Bitcoin, Holds 40,359 BTC

The German government has transferred another stash of Bitcoin to major cryptocurrency exchanges. This action, occurring amidst a broader market downturn, has raised questions about its potential impact on Bitcoin’s price.

Breaking Down the Bitcoin Transaction

According to blockchain intelligence firm Arkham, the German government moved a total of 1,300 BTC to Bitstamp, Coinbase, and Kraken at 16:25 UTC+8 today.

The transfer, worth approximately $75.53 million, marks the largest movement to centralized exchanges (CEX) in recent times. The breakdown of the transfer shows 400 BTC sent to Coinbase, another 400 BTC to Kraken, and 500 BTC to Bitstamp.

Additionally, Arkham reported that the government moved 1,700 BTC ($99M) to an address labeled “139Po.” They speculated that these funds might be headed for an institutional service or over-the-counter (OTC) trading.

Market Reaction to Bitcoin Transfer

This large-scale movement of Bitcoin coincides with a major dip in the cryptocurrency’s price. Bitcoin is currently trading at the $57,000 level, down 4.8% in the last 24 hours.

The downward trend extends further, with Bitcoin showing a 5.3% decrease over the past week and a 16.3% slump over the past month.

While it’s challenging to attribute the price movement solely to the German government’s actions, such large transfers often influence market sentiment and liquidity.  

Despite this substantial transfer, the German government still holds a large amount of Bitcoin. Arkham reports that 40,359 BTC ($2.3B) remains in tagged addresses on-chain. This suggests that this sell-off represents only a fraction of their total holdings.

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Also Read: Bitcoin Price Drops Below $60,000: BTC Weekend Projections

Vignesh Karunanidhi

Vignesh Karunanidhi is a crypto journalist with a knack for making complex financial topics accessible and entertaining. Through his engaging writing style and strong social media presence, he have built a dedicated community of crypto enthusiasts eager to stay informed about the latest market trends and innovations. Additionally, Vignesh offers valuable perspectives on the factors driving crypto prices.

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