Germany Transfers $40.5 Million in Bitcoin Amid Ongoing Sell-Off

Germany Transfers $40.5 Million in Bitcoin Amid Ongoing Sell-Off

The German government has recently transferred 700 Bitcoins (BTC), valued at approximately $40.47 million, as part of an ongoing trend of liquidating its Bitcoin holdings that began in June.

Germany’s Bitcoin Liquidation Continues

According to data from the blockchain analytics platform Lookonchain, the German government has moved an additional 700 BTC to various cryptocurrency exchanges. This latest transaction has sparked mixed reactions on crypto Twitter, with some speculating that Bitcoin’s price could potentially drop to the $40,000 range soon.

German authorities have been consistently selling off their Bitcoin holdings, contributing significant downward pressure on the cryptocurrency market. Over the past few weeks, substantial amounts of Bitcoin have been transferred to exchanges by the government.

Despite these substantial sell-offs, Germany still holds 39,826 BTC, valued at $2.29 billion. The continued liquidation has influenced Bitcoin’s price, which has fallen by over 7% in the last week.

Since June 19, a total of 17,788 BTC (approximately $1.08 billion) has been transferred by the German government, the U.S. government, and the now-defunct Mt. Gox exchange. Starting from July 1, Germany has been conducting daily Bitcoin transfers. Collectively, these entities hold 396,210 BTC, valued at $22.78 billion.

As of July 5, the German government holds 41,226 BTC, valued at $2.28 billion. The U.S. government possesses 213,297 BTC, worth $11.72 billion, and Mt. Gox controls 141,687 BTC, amounting to $7.78 billion.

For context, the German government had previously confiscated these Bitcoins during various criminal investigations, including cases involving film piracy sites, darknet marketplaces, and other illicit activities. Initially, the government held an estimated 39,826 BTC, valued at $2.29 billion.

Bitcoin Price Faces More Volatility

Bitcoin has recently fallen to a two-month low due to several factors, including uncertainty around the U.S. presidential election, the impending repayment of funds by Mt. Gox, and selling pressure from struggling cryptocurrency miners.

Mt. Gox, once the leading cryptocurrency exchange before its collapse in 2014, is set to begin repaying its creditors. This has raised concerns that the influx of Bitcoin into the market could further depress prices as creditors might opt to sell their recovered funds immediately.

Additionally, cryptocurrency miners are facing financial pressure, with daily miner revenue dropping by 75% since the April halving event that reduced their rewards. In response, miners have been selling their Bitcoin holdings to cover costs, adding to the overall selling pressure.

Despite the current downturn, some analysts remain optimistic about Bitcoin’s long-term prospects. Market analyst Tony Sycamore believes this is a period of consolidation and that Bitcoin could retest its March highs and potentially reach $80,000.

However, the near-term outlook remains uncertain. Investors will be closely watching for any dovish signals from the Federal Reserve, which could potentially boost the cryptocurrency market.

At the time of writing, Bitcoin is trading at $56,797, representing a decline of over 20% in the last 30 days.

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