The German government sold a bigger-ish amount of Bitcoin, leading to concerns about its impact on Bitcoin prices. Possible impact, let me say this.
Paper hands, or tipping the toes into the market?
A wallet, associated with the German government offloaded over $54 million worth of Bitcoin, as on June 25, this wallet sold 900 Bitcoin in three separate transactions.
The first two transactions, each involving 200 BTC, were sent to the Coinbase and Kraken exchanges.
The third transaction, with 500 BTC worth over $30 million, was transferred to an unknown wallet labeled 139Po by Arkham Intelligence, a blockchain analyst company.
The unknown wallet, 139Po isn’t totally unknown, it has interacted with the German government before.
On June 20 and June 19, the government transferred 800 BTC and then 500 BTC to this address.
Following these recent transfers, the wallet still holds 46,359 Bitcoin, according to Arkham Intelligence.
Downtrend
Many are afraid, the large Bitcoin holdings in this government wallet, valued at over $2.8 billion, could causing big selling pressure, pushing Bitcoin prices below the critical $60,000 mark. But it’s critical only for the traders.
Or maybe for the miners. Right now, Bitcoin is trading just above $61,000, having declined by 11% over the past month and over 7% in the past week, according to Bitstamp data.
And as it dipped to below $60,000, in the social media we got the 58k gang memes again.
Popular analyst Willy Woo has suggested that Bitcoin might experience a correction lasting up to four weeks before its price rally resumes.
Means: red days incoming. The best case is the crab market. In a June 22 post to his 1.1 million followers, Woo noted that technical chart patterns indicate a cooling period for Bitcoin price action. It would be sucks to being trader now.
The precious
The German government’s Bitcoin transactions have raised concerns because many thinks they will selling more.
They didn’t, but the possibility is here. On June 19, the government wallet transferred 6,500 BTC worth over $425 million, leading to speculation about potential market impact.
This wallet had held nearly 50,000 BTC since February 2024, believed to have been seized from the operator of the pirate movie website Movie2k.
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