In a surprising move, the German government bought back a nice amount of BTC.
The government purchased 1,915 BTC, valued at $111.5 million, from major exchanges Kraken, Bitstamp, and oinbase. So they’re selling, or they’re buying?
Unpredictable moves
Few weeks before there were Bitcoin sales by Germany, causing market volatility and leading to questions about the government’s strategy, and now, the sudden purchase also sparked speculations and renewed optimism among Bitcoin investors.
Update: German Government BTC Movements
German Government wallets received 1915 BTC ($111.5M) last night back from addresses linked to Kraken, Bitstamp and Coinbase.
1047.4 BTC ($57.2M) has been moved out of their wallets this morning:
-547.4 BTC ($30.1M) to Flow Traders
-500… pic.twitter.com/e6ARrAh4Td— Arkham (@ArkhamIntel) July 5, 2024
On Friday morning, the government also moved 1,047 BTC, worth $57.2 million, out of their wallets.
Without any news, or hint from officials about what’s in the background, why are they transacting.
Why are they buying after they sold?
This isn’t Germany’s first significant crypto transaction this month. Earlier, they transferred 832 BTC, worth around $52 million, with 282 BTC sent to exchanges like Bitstamp, Coinbase, and Kraken.
Despite these transactions, the overall balance of Bitcoin moved in and out of exchanges by the government is still negative, and few community members thinks this suggests they might have wanted to sell but decided to withdraw the Bitcoin back to their wallets after a price drop.
While there is no official statement, this could be more or less a plausible theory. I don’t know, it was „free” for them, why would they care the price?
But two days later, another major transfer of 3,000 Bitcoins, worth about $174 million, took place.
The government wallet now holds 40,526 BTC, valued at over $2.29 billion. These movements have caused bigger than usual volatility in the crypto market, with Bitcoin’s price dropping to $53,700 in the weekend.
Let the Sun shine
Justin Sun, founder of Tron, shared his intention to negotiate with the German government to reduce the market impact of their Bitcoin sales.
I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) July 4, 2024
He presented an offer that an off-market transaction could prevent more price fluctuations, stabilizing the price.
Sun’s goal is to find a solution that benefits all parties involved, including all the Bitcoin owners.
One thing is sure, the German government’s buyback and these large transfers have led to increased speculation in the market, keeping the investors in relative uncertainty. Hopefully we will get some clarifications soon.
