The German government offloaded approximately $76 million worth of Bitcoin, distributing 1,300 BTC across several prominent cryptocurrency exchanges. The renowned analytical platform, Arkham Intelligence, reported this substantial transfer in a recent X post. The news of this transfer coincided with a sharp decline in Bitcoin’s value, which fell below the $58,000 mark.
Arkham Intelligence’s data pinpointed the distribution of the 500 BTC, valued at $29.05 million, to Bitstamp, while Coinbase and Kraken each received 400 BTC, worth $23.24 million. Furthermore, the German authorities relocated an additional 1,700 BTC, valued at $98.76 million, to an undisclosed wallet. This move sparked widespread speculation about potential future sell-offs as part of the government’s strategy to mitigate its exposure to Bitcoin’s notorious volatility.
The German government’s total Bitcoin offload now stands at about 10,000 BTC. Despite this significant divestment, it retains a large portfolio of 40,359 BTC, valued at around $2.32 billion. These ongoing sales reflect a strategic effort to manage and reduce exposure to the volatile cryptocurrency market, although the specific motivations behind these moves remain unclear.
Bitcoin Below $58,000: Are Whale Movements and Mt. Gox the Cause?Recently, data from the platform indicates that on July 2, the government transferred 832 BTC, valued at $50 million, to Flow Traders, a market maker. In addition, another 361.877 BTC, valued at $22.65 million, was also transferred. These transactions demonstrate the government’s ongoing and systematic effort to divest its Bitcoin holdings, underscoring its cautious approach to cryptocurrencies’ volatility.
Over the past 24 hours, the Bitcoin market reacted sharply to these developments, with the price declining by 4.02% and currently trading at $57,831. This dip is part of a larger downturn in the crypto market, which saw an overall decline of 5.02%. The German government’s actions have accelerated this price drop, adding to the market’s pressures.
Bitcoin’s trading volume escalated dramatically by 58.71% during this period, reaching $36.48 billion. Despite fluctuations between $60,558 and $57,338, Bitcoin’s open interest decreased by 4.25%, settling at $30.39 billion, according to Coinglass data.
The market also experienced significant liquidations. Bitcoin’s long positions faced liquidations worth $78.79 million in the past day, which played a major role in the downturn. Comparatively, short liquidations totaled only $12.71 million, insufficient to mitigate the effects of long liquidations. This highlights the market’s sensitivity to large-scale sell-offs by major stakeholders like the German government.
