bitcoin, the largest cryptocurrency asset, is in the spotlight as the German government, the Bundeskrimanalamt (BKA), has continued its aggressive btc selling spree, transferring over 6,306 btc as part of its ongoing liquidation strategy, which has triggered a broader discussion about its potential impact on the crypto asset’s price.
German government dumps thousands of bitcoins
Despite recent warnings from Joana CótarGerman parliament member, regarding the unreasonable and ineffective bitcoin strategy adopted by the government, they are still unloading additional btc from the country's holdings.
According x.com/ArkhamIntel/status/1810611088838279436″ rel=”nofollow” target=”_blank”>data From a well-known intelligence platform, Arkham, the German government moved the 6,306 btc, valued at $362 million, to the address bc1qu, Cumberland, 139Po (either an institutional depository or an over-the-counter service), and Kraken on Tuesday morning. The platform also reported that of the 6,306.9 btc, about 3,206.9 btc were transferred in the space of 20 minutes.
The message read:
In the past 3 hours, the German government has sent 6,306.9 btc ($362.12M) to Kraken, Cumberland, 139Po (likely an institutional/OTC escrow service), and bc1qu address. Of this amount, 3,206.9 btc ($184.58M) has been sent in the past 20 minutes.
Although the government moved a substantial amount of btc yesterday, Arkham revealed that the government recovered a whopping 5,366 btc from major cryptocurrency exchanges like Coinbase, Bitstamp, and Kraken following yesterday’s massive transactions.
It should be noted that on Monday the authorities also x.com/ArkhamIntel/status/1810331451348386106″ target=”_blank” rel=”noopener nofollow”>carried out Some significant transactions, with over 5,200 btc sent to centralized exchanges. Arkham revealed that sovereignties sent the aforementioned coin to Kraken, Bitstamp, and Coinbase, and to the 139Po wallet address immediately after the firm reported on the development on Platform x (formerly twitter).
Despite these significant bitcoin transfers, Arkham data shows that German The government's btc holdings still exceed 22,847 btc, which is worth a staggering $1.32 billion. This figure is now less than half of the amount of btc that was initially mined from Movie2k.
Given the potential impact of these large-scale transactions on the bitcoin market and price, the actions have caused quite a stir within the cryptocurrency community. Bitfinex, a major Hong Kong-based cryptocurrency exchange, highlighted that the ongoing sell-off caused a 16% peak-to-trough drop in btc’s value last week, falling from its Tuesday high to a low of $53,219.
Are major institutions still buying btc?
The German government may be selling bitcoin on a massive scale, causing the price of the digital asset to fall, but major institutions like VanEck have made the bold decision to buy during the dip.
Matthew Sigel, director of digital asset research at the firm x.com/matthew_sigel/status/1810697391823294741″ target=”_blank” rel=”noopener nofollow”>revealed The strategic move to acquire more bitcoin Despite the recent drop, the research head said the firm did buy bitcoin across several of its multi-asset portfolios on Monday, underscoring its confidence in the asset and its potential to be a valuable component of investment plans.
Featured image from Adobe Stock, chart from Tradingview.com
