- The German government continues to transfer seized Bitcoins to cryptocurrency exchanges.
- Blockchain analysis platform Lookonchain reported that a government-owned wallet moved around 11:00 today.
- The transfers are raising concerns about Bitcoin’s market pressure.
The German government has been actively transferring seized Bitcoins to exchanges, triggering market concerns about potential selling pressure.
German Government Moves Bitcoin to Exchanges
According to data from Blockchain analysis platform Arkham, the German government conducted a transaction involving 750 Bitcoins in total. Of these, 250 Bitcoins were sent to cryptocurrency exchanges Bitstamp and Kraken. Moreover, a test transaction of 0,001 Bitcoin was made to market maker Flow Traders, likely as a precursor to larger transfers.
Increased Selling Pressure on Bitcoin
Blockchain records indicate that the government still holds 45,609 Bitcoins, valued at approximately $2.8 billion based on current figures. This massive reserve adds significant selling pressure to the cryptocurrency market. Recently, the government transferred 400 Bitcoins to Kraken and Coinbase, further amplifying market anxiety.
Impact on Bitcoin Prices
Continuous sales of millions of dollars worth of Bitcoin over the past few days have put substantial downward pressure on the market. Luuk Strijers, CCO of the largest crypto derivatives exchange Deribit, highlighted that one of the major reasons for the recent dip in Bitcoin prices includes the German government’s selling pressure. Other contributing factors are sales by miners and panic originating from the Mt. Gox bankruptcy case.
Conclusion
The sustained Bitcoin sales by the German government are evidently placing significant strain on the cryptocurrency’s value. As the government continues these transfers, traders and investors should remain vigilant about the potential for further market volatility.
