NAIROBI (CoinChapter.com)— The German government has transferred 1,000 Bitcoin (BTC), valued at approximately $55.79 million, to Coinbase, Bitstamp, and other addresses. Lookonchain reported that 250 BTC went to each exchange, while 500 BTC were sent to an unidentified address starting with 139Po.
In the last 19 days, Germany has moved a total of 11,032.3 BTC, valued at around $668.2 million. The transactions have created ripples in the market, with Bitcoin’s price experiencing significant volatility.
Over the past week, 7,970 BTC worth approximately $462 million were sent to major exchanges, contributing to a market downturn. The movement caused Bitcoin’s price to briefly dip below $55,000 before stabilizing between $55,000 and $56,000.
German Bitcoin Sell-off Triggers Market Fear
Despite the sales, the German government still holds 38,826 bitcoins, valued at around $2.17 billion. The ongoing transfers have led to a bearish sentiment among traders, with many speculating about the future market direction.
The CoinMarketCap Crypto Fear & Greed Index reflected the sentiment, with a score of 36 indicating fear in the market.
As of July 8, Bitcoin price was trading near $57,120, with a 24-hour trading volume of $23.4 billion. The crypto token saw a 2.31% decline over the past day, fluctuating between $56,045.50 and $54,415.94. Bitcoin’s market capitalization stood at $1.1 trillion, with open interest dropping by 2.29% to $15.8 billion.
It is likely the German government’s dumping of BTC resulted in the token’s volatility.
Mags, an independent crypto analyst, highlighted Bitcoin’s weekly candle closing below $60,000 for the first time in four months, marking a 27% correction from its all-time high. The next significant support is at the upward-sloping trendline from $15,500, indicating further potential downside.
Critics Slam German Government’s Bitcoin Sales
The German government’s Bitcoin sales have been criticized by various quarters. Joana Cotar, a member of the German Bundestag, voiced her opposition to the sales, urging the government to use digital assets to diversify its treasury holdings instead.
She argued that holding Bitcoin as a strategic reserve currency could strengthen Germany’s geopolitical position, similar to discussions in the United States.
Justin Sun, founder of Tron, offered to purchase Bitcoin from the German government off-market to mitigate the negative impact on spot prices. Analysts, including Alex Krüger, suggested that the continued selling pressure from these transfers would keep the market on edge.
Moreover, Krüger expects continued selling pressure to keep the market cautious but remains optimistic about a positive outlook toward year-end.
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