German Government Moves 500 Bitcoins, Is Another BTC Gap Coming?
The German government recently transferred 500 Bitcoin (BTC) amid a sharp market decline, sending the BTC price crashing to $54,000. The move has sparked fears of an accelerated market crash. Furthermore, the collapsed crypto exchange Mt. Gox has begun paying back its creditors in Bitcoin and bitcoin cash (BCH), further exacerbating market FUD.
Inside the German Government’s Latest Bitcoin Transfer
According to arkham Intelligence, the transfer was made to the 139Po… wallet address, which is known to manage the German government’s Bitcoin transactions. Moreover, this wallet usually takes BTC from the government and transfers it to other wallets. This could lead to significant sell-offs on crypto exchanges. The German government currently has 41,774 thousand BTC worth $2.26 billion in its wallet.
Earlier, on July 4, the German government transferred 1,300 BTC to popular crypto exchanges. Arkham’s data showed that the total of this sale was around $76 million. The Bitcoin price dropped below $58,000 shortly after this massive liquidation, and the trend continued.
In Thursday’s transfer, the German government moved 500 Bitcoins worth $29.05 million to bitstamp. They also sent 400 BTC worth $23.24 million each to Coinbase and Kraken. The government also moved 1,700 BTC worth $98.76 million to the same wallet used in the last transaction.
This sparked speculation that a sell-off was imminent, as this wallet is often used to transfer more BTC. The 1,700 BTC was then transferred from this wallet to another wallet. The wallet also shifted 500 Bitcoins worth $27.07 million today to the bc1q7…. wallet address that was included in the German government’s Bitcoin dump.
However, these transactions have raised concerns that the government’s actions could cause a more serious downturn in the market. On the contrary, the government did get back 1,570 Bitcoins transferred on Thursday. 545 BTC of this were withdrawn from Coinbase, Bitstamp and kraken. However, this withdrawal did not have a positive effect on BTC.
Amidst these Bitcoin transactions, Tron founder Justin Sun made an unofficial offer to the German government. In a post on X, he wrote: “I am ready to negotiate with the German government to purchase all BTC outside the market to minimize the impact on the market.”
Also Read: Breaking News: German Government Sends 1300 More Bitcoins to Coinbase, Kraken and Bitstamp
What’s Next for BTC Price?
Previously, the Bitcoin price had fallen below $54,000 as the crypto market reacted to several major events, including the German government’s recent Bitcoin sale and the long-awaited start of the Mt. Gox refunds. The crashed exchange recently released 3,000 BTC. There are serious concerns that this transfer will lead to further declines.
Moreover, Bitcoin whales have transferred over 30,000 BTC ($1.8 billion) in the past month. This mass sell-off has also contributed to the bearish trend. Peter Schiff, a well-known Bitcoin skeptic, has highlighted the difficulties for Bitcoin ETF investors.
He suggested that if the BTC price drops below $38,000, it could trigger a sell-off by discouraged investors. Schiff had previously predicted a major crash coinciding with the Mt. Gox payouts, and that prediction has now come true.
The market is also feeling the impact of significant liquidations. According to Coinglass data, Bitcoin long positions were liquidated worth around $300 million, adding to the downward pressure. Despite the gloomy outlook, some industry experts remain hopeful. wazirx founder Nischal Shetty offered a more optimistic outlook, suggesting that the current challenges could be temporary.
Also Read: German MP Wants Government to Keep Bitcoin (BTC), Not Sell It
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Kritika has over 2 years of experience in the financial news industry. Currently working as a crypto journalist at Coingape, she has consistently demonstrated a mastery of blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of emerging trends in finance, technology, and crypto.
The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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