Germany transfers about $40.5m in Bitcoin amid ongoing sell-off

The German government has transferred 700 Bitcoins (BTC), valued at approximately $40.47 million. This transaction is part of an ongoing trend: the government has consistently sold its Bitcoin holdings since June.

Germany’s Bitcoin liquidation continues 

According to blockchain data analytics platform Lookonchain, the German government has transferred a fresh 700 BTC to crypto exchanges. 

The country’s latest transaction has attracted mixed reactions across crypto Twitter, with some forecasting that the Bitcoin price could crash to the $40k region soon. 

German authorities have been actively selling their Bitcoin holdings, adding significant pressure to the cryptocurrency market. In recent weeks, they have transferred substantial amounts of Bitcoin to various cryptocurrency exchanges.

Despite recent substantial sell-offs, the German government still retains 39,826 BTC, worth $2.29 billion. This activity has exerted pressure on Bitcoin’s price, falling by over 7% in the last seven days. 

Since June 19, there has been a transfer of 17,788 BTC (approximately $1.08 billion) involving the German government, the US government, and the now-defunct Mt. Gox exchange. 

Since July 1, the German government has been conducting daily BTC transfers. These entities collectively hold 396,210 BTC, valued at $22.78 billion.

As of July 5, the German government holds 41,226 BTC valued at $2.28 billion, while the U.S. government possesses 213,297 BTC worth $11.72 billion. Additionally, Mt. Gox controls 141,687 BTC, amounting to $7.78 billion.

For those who are unaware, the German government had previously confiscated these Bitcoins during various criminal investigations, including cases involving film piracy sites, darknet marketplaces, and other illicit activities. Initially, the government held an estimated 39,826 BTC, valued at $2.29 billion.

Bitcoin price faces more volatility 

Bitcoin has fallen to a two-month low due to a combination of factors: the uncertainty around the U.S. presidential election, the impending repayment of funds by the defunct Mt. Gox exchange, and selling pressure from struggling cryptocurrency miners.

Mt. Gox, once the leading cryptocurrency exchange before its collapse in 2014, is set to begin repaying its creditors. This has raised fears that the influx of Bitcoin into the market could further depress prices as creditors may opt to sell their recovered funds immediately.

Cryptocurrency miners are also under financial pressure, with daily miner revenue dropping by 75% since the April halving event that reduced their rewards. In response, miners have been selling their Bitcoin holdings to cover costs, contributing to the overall selling pressure.

Despite the current downturn, some analysts remain optimistic about Bitcoin’s long-term prospects. Tony Sycamore, a market analyst, believes this is a period of consolidation and that Bitcoin could retest its March highs and potentially reach $80,000.

However, the near-term outlook remains uncertain. Investors will closely watch for any dovish signals from the Federal Reserve, which could boost the cryptocurrency market.

At the time of writing, Bitcoin is trading at $56,797, representing an over 20% price decline in the last 30 days.