Key Points
- Germany’s government has sold 400 Bitcoin on Kraken and Coinbase exchanges.
- The sell-off has contributed to Bitcoin’s drop to $60,000.
The German government has made a significant move in the cryptocurrency market by selling 400 Bitcoin (BTC) on major trading platforms, Kraken and Coinbase. This sale, totaling $24.4 million based on Bitcoin’s current value, took place at 15:38 UTC+8.
Details of the Bitcoin Sale
The sale of 400 Bitcoin followed a previous offload of over 1,700 Bitcoin, worth $110 million, by the German authorities. As per the data from blockchain analysis platform Arkham Intelligence, the government’s Bitcoin holdings now stand at $2.8 billion, including $1.1 billion in unrealized profit.
It’s worth noting that Bitcoin whale activities have increased significantly in recent days, following a period of stagnant price action. This increase appears to be a response to the gains offered by Bitcoin following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States by the Securities and Exchange Commission (SEC) in January.
Impact of the Bitcoin Sale
Of the 400 Bitcoin sold, 200 were deposited on Kraken and the other half on Coinbase. This large sell-off by the German government, coupled with two consecutive weeks of outflows from spot Bitcoin ETFs, has contributed to a drop in Bitcoin’s price. The cryptocurrency is currently testing the $60,000 price level.
A week ago, the German government held 49.86K Bitcoin, valued at $3.32 billion. However, as of June 25th, the authorities hold 47.18K Bitcoin, worth $2.98 billion. This represents a net change of $341.46 million in the government’s holdings.
The government’s sell-off coincided with outflows worth $174.5 million from the spot Bitcoin ETF on June 24th. Meanwhile, a Bitcoin whale purchased Bitcoin worth $961 million, paying just around $3 in fees, suggesting that investors are capitalizing on the recent Bitcoin price drop.
As per CoinMarketCap, Bitcoin’s price stands at $61,267, up 0.17% in the past 24 hours. The market capitalization of the cryptocurrency is $1.2 trillion, while its trading volume rose by 59.46%, currently valued at $38.319 billion. Bitcoin is down 6.43% in seven days, and has fallen 11.71% in the last 30 days.
Bitcoin is also down by around 16.89% from its all-time high of $73,750 witnessed earlier this year in March. The Mt. Gox repayments, followed by the transfer of thousands of Bitcoin by the German government, have contributed to the recent drop in the value of the world’s largest cryptocurrency.
