Bitcoin’s potential rebound was halted early Thursday after on-chain trackers noticed a significant transfer by the German government. According to Arkham Intelligence, the government moved 700 BTC, worth about $40.55 million, to the unmarked address 139PoP…H7ybVu early Sunday.
Crypto users suspect the address might belong to an OTC service or institution. This latest transfer is part of the significant daily BTC moves by the German government since last week. Crypto trackers have linked most previous transfers to centralised exchanges, coinciding with the recent crypto crash, the largest since the last Bitcoin halving.
German government seems obsessed with 700 (#Bitcoin) pic.twitter.com/YQaOUZwyu0
— Bitcoinik (@Bitcoinikdotcom) July 7, 2024
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Currently, the German government holds a total of $2.29 billion.
Recently, the US government sold 3,940 BTC that had previously belonged to a drug dealer, marking a significant transaction. Such large-scale Bitcoin sales have historically created substantial sell pressure in the cryptocurrency market, akin to the effects seen recently with the German government’s Bitcoin sale.
When a significant amount of Bitcoin is sold within a short period, particularly by entities like governments, it can impact market prices due to the sudden increase in supply. This can potentially lead to a temporary decrease in Bitcoin’s price as market participants adjust to the new supply dynamics.
Bitcoin price action
The current trading price of Bitcoin (BTC) is $57,468, marking a 1.47% increase over the last 24 hours. Over the recent 12 hours, the price of Bitcoin has shown incremental gains, likely due to a significant accumulation of Bitcoin by whales who were anticipating significant corrections.
A popular crypto analyst TitanOfCrypto suggested that Bitcoin may have reached a local bottom after experiencing capitulation, where sellers have panicked and sold off their holdings. The reference to a liquidation record similar to one on now-bankrupt crypto firm FTX suggests that there was significant selling pressure recently.
Despite this, the author believes there is a good chance that the price has found support at this level, implying that further significant downward movement may be less likely in the near term.
Read also: Spot Ethereum ETF Set to Ignite American Investment Surge in Digital Assets
Bitcoin’s Rally Stalls as German Government Moves $40.55 Million in BTC
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