German Government’s Bitcoin Dump Surpasses $195M As Selling Spree Persists

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As a crypto investor with several years of experience in this market, I find the recent actions by the German government and long-term Bitcoin whales to be concerning. The sudden selling pressure from these large players has contributed significantly to the current market volatility and lack of clear direction for Bitcoin’s price.

I, as an analyst, have observed that the German government has started offloading large amounts of Bitcoin from a seized digital wallet, amounting to millions of dollars. This action, in my assessment, adds to the existing lack of significant triggers for a price rebound in the cryptocurrency market.

Recent heightened selling from both active traders and long-term Bitcoin holders has caused a sudden price drop, halting Bitcoin’s advance towards $70,000 and denying it the opportunity to challenge its old record high.

Whales And German Government Fuel Market Volatility

Based on data from cryptocurrency investigation firm Arkham, it appears that the German government has begun the procedure to dispose of Bitcoin by transferring approximately 65 million dollars’ worth of the digital currency to suspected exchange wallets, such as Coinbase, during the early hours of trading on Thursday.

On Wednesday, according to NewsBTC’s report, the German Government transferred approximately $600 million in Bitcoin. Around $130 million was sent to four possible exchange wallets, including Kraken and Bitstamp. However, Arkham’s data reveals that the German Government continues to possess over $3 billion worth of Bitcoin.

As a financial analyst, I can tell you that in late January, I came across the news of a significant cryptocurrency seizure in Germany. The German authorities confiscated approximately 50,000 Bitcoins, which at the time were valued around $2.17 billion. This seizure took place following the suspects’ decision to transfer those Bitcoins into official wallets managed by the Federal Criminal Police Office (BKA).

As a researcher studying the Bitcoin market, I’ve noticed some intriguing trends in the on-chain data. specifically, long-term Bitcoin whales have disposed of approximately $1.2 billion worth of their BTC holdings over the past two weeks. This significant selling action may be contributing to the current market downturn by intensifying the sell pressure.

Bitcoin Price Analysis

In a recent social media update, tech analyst Mags shared his astute perspective on Bitcoin’s current price trend, implying a possibility of a mid-term price downturn. He outlined two plausible possibilities for the market’s progression moving forward.

    Scenario 1: Reclaim the mid-range: According to Mags, the recent pump on Thursday, which temporarily pushed the price above $66,000, has been completely retraced as BTC trades at $64,860, indicating a bearish retest on the daily chart. 
    Scenario 2: Retesting the range low: Mags highlight an important support level near the range low of $60,500. This level holds significance in determining the potential future trajectory of BTC’s price. 

In my research, I’ve observed Bitcoin regaining its footing at the middle ground of its current price range. Should this trend persist, there’s a strong possibility for a surge towards the upper end of the range. Based on Mags’ assessment, if we reach this point, it could signal a powerful breakout above the previous high, indicating a continuation of the bullish trend.

An alternate possibility is that Bitcoin (BTC) will touch the lower end of its current price range once more before climbing upwards. In such a case, this could result in an extended spell of price stagnation or sideways trend, possibly extending the duration of the consolidation period.

Despite this situation, Mags remains optimistic, believing that the larger-scale trend remains favorable.

German Government’s Bitcoin Dump Surpasses $195M As Selling Spree Persists

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2024-06-21 02:10