As a researcher with extensive experience in the cryptocurrency market, I find the recent sell-off of Bitcoin by the German government alarming but not entirely unexpected. Given that they have now sold over 90% of their seized BTC, worth over $2.1 billion, it appears that this significant selling pressure is coming to an end.
Following a month-long stretch of intense Bitcoin sales due to market pressures, the German government has almost depleted its Bitcoin reserves. They have sold approximately 90% of the BTC, which was the largest seizure in Germany’s history and valued over $2.1 billion.
As a financial analyst, I would interpret this situation as follows: With roughly $300 million left in Bitcoin sales, this marks the conclusion of a substantial selling phase. Anticipation runs high among investors that the dominant cryptocurrency’s price will continue to climb.
9.9% Of Seized BTC Remains
According to Arkham’s market intelligence, data from the blockchain indicates that the German government offloaded 2,375 Bitcoin, worth approximately $137.87 million, to cryptocurrency exchanges Kraken, Bitstamp, and Coinbase, on a Thursday transaction.
Following this, a total of 3,250 BTC worth approximately $191.02 million was transferred to exchanges and OTC platforms for the purpose of selling.
As an analyst, I’ve discovered that the German government moved 5,000 Bitcoin (equivalent to approximately $286.44 million) to several market makers and cryptocurrency exchanges – Flow Traders, Coinbase, Kraken, Bitstamp, 139Po, and bc1qu – in a recent transaction. More notably, on Thursday, they transferred an additional 10,627 Bitcoin (around $615.33 million).
Based on the latest data from Arkham, the German government presently possesses approximately 9.9% (or around 4,925 Bitcoins) of the initial 50,000 BTC that were confiscated from Movie2k in January. This equates to a value exceeding $284 million at the current Bitcoin price point of roughly $57,000 per coin.
As a crypto investor, I’ve come across some disappointing news regarding Movie2k, a movie streaming platform I’ve been following. Sadly, this service has been implicated in money laundering and other illicit activities according to the German state of Saxony.
As a researcher, I came across an intriguing report on our sister site, Bitcoinist. According to this article, published on Wednesday, Dr. Lennart Ante, one of the co-founders of a German blockchain research lab, disclosed that the Saxon government is legally bound to sell off the confiscated bitcoin. Despite calls from legislators like Joana Cotar for the German parliament to hold onto the seized BTC, the authorities are required to follow standard procedures and liquidate this digital currency.
Despite this, Dr. Ante elaborated that, following standard protocol, the general prosecutor’s office in Saxony handles the sale of seized bitcoins.
Bitcoin Price Analysis
At present, Bitcoin’s value hovers above $57,400. The positive aspect is that it has held this price point for several days in a row, indicating a sense of market stability. This could pave the way for another bullish surge aimed at overcoming significant resistance levels.
Last week, Bitcoin experienced extreme price volatility with significant fluctuations due to selling pressure from the German government and uncertainties surrounding Mt. Gox payments. In contrast, this current situation presents a stark difference.
For the next few days, Bitcoin will encounter a significant resistance at the price point of $58,200. This level has posed a challenge for Bitcoin in the last week, preventing it from advancing further to confront the next hurdle at $60,200.
In due time, it is yet uncertain when the German government will conclude its Bitcoin sales and exhaust its Bitcoin holdings. Subsequently, it remains to be explored how the bitcoin market price will adjust once the persistent selling pressure of the previous month recedes.
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2024-07-12 10:17