As an experienced analyst, I believe that the recent sell-off of 400 bitcoins (BTC) by the German government on leading digital asset trading platforms Kraken and Coinbase is a significant development that should not be overlooked by investors. The timing of these transactions, following the German authorities’ previous sale of over 1,700 BTC worth $110 million, has contributed to the fall in Bitcoin’s price and increased market volatility.
Approximately $24.4 million worth of Bitcoins, which is equivalent to 400 units, have been transferred by the German government onto two prominent digital asset trading platforms, Kraken and Coinbase. This transaction may serve as a warning for investors to prepare for potential market fluctuations. The Bitcoin was deposited into these exchanges at around 15:38 UTC+8.
According to Arkham Intelligence’s blockchain analysis, a deposit of 400 BTC was made following the German authorities selling over 1,700 BTC, equivalent to around $110 million, on exchanges Kraken, Coinbase, and Bitstamp. At present, their Bitcoin holdings amount to approximately $2.8 billion, with an unrealized profit of around $1.1 billion.
As an analyst, I’ve noticed a notable increase in Bitcoin whale activities over the past few days following a prolonged period of price stagnation. This surge suggests that many holders are seizing opportunities to profit from the gains generated by Bitcoin since the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) in January.
Among the 400 Bitcoins, 200 coins were transferred to Kraken and an equal amount was sent to Coinbase. The sudden sell-off instigated by the German government and successive weekly withdrawals from Bitcoin spot ETFs for two consecutive weeks have resulted in a significant drop in Bitcoin’s price, which is presently challenging the $60,000 mark.
According to the records from Arkham, one week prior on June 18th, the German government held approximately 49,860 Bitcoins valued at around $3.32 billion, with each Bitcoin priced at about $66,642. However, as of June 25th, the government’s Bitcoin holdings totaled around 47,180 Bitcoins, now valued at roughly $2.98 billion, with each Bitcoin costing around $63,190. This equates to a decrease in value of approximately $341.46 million from their previous holdings.
Based on the information from Farside Investors, I’ve noticed an intriguing correlation: the German government’s sell-off on June 24th coincided with a significant outflow of $174.5 million from the spot Bitcoin Exchange-Traded Fund (ETF). Meanwhile, Grayscale’s GBTC, Fidelity’s FBTC, and Franklin Templeton’s EZBC experienced outflows worth $90.4 million, $35.2 million, and $20.9 million respectively. In contrast, BlackRock’s IBIT remained neutral with no change in inflows or outflows during this period.
In contrast, Ash Crypto, a well-known crypto trader, highlighted on social media X (formerly Twitter) that an individual whale purchased $961 million worth of Bitcoins at a relatively low transaction fee of approximately $3. This action implies that investors are capitalizing on the recent Bitcoin price downturn.
Recent Bitcoin Crash
According to CoinMarketCap’s latest update, Bitcoin’s price is currently at $61,267, representing a slight increase of 0.17% over the past day. The total value of all existing Bitcoins, or its market capitalization, amounts to an impressive $1.2 trillion. The trading volume for this digital currency has surged by 59.46%, currently estimated at $38.319 billion. However, Bitcoin has experienced a decrease of 6.43% over the last week and a more significant drop of 11.71% in the previous month.
As a crypto investor, I’ve noticed that Bitcoin has dropped approximately 16.89% from its peak price of $73,750 which it reached back in March this year. The reasons behind this decline are twofold. Firstly, there have been Mt. Gox repayments to creditors, and secondly, a large amount of Bitcoin was moved by the German government. Both events have significantly impacted the price of Bitcoin and led us to current market conditions.
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2024-06-25 14:57