Flow

2024

Bitcoin

Arkham

On Monday, the German government moved more than 16,000 Bitcoins to different exchanges and market makers. This incident led to significant swings in the cryptocurrency market. 
As reported by blockchain analytics platform Arkham, those first few transfers consisted of 133.723 BTC to market maker Cumberland DRW, then 5200 BTC to Flow Traders, 4200 BTC to the B2C2 Group, 2350 BTC to Bitstamp, 2050 BTC to Coinbase and 1250 BTC to Kraken. These transactions are a part of the ongoing German government’s move to sell all its Bitcoins. 
<blockquote class="twitter-tweet">
 TODAY: German Government selling up to $155M BTC Today the German Government sent 2738.7 BTC ($155.3M) to likely exchanges/market makers including Kraken, Cumberland, 139Po (likely deposit for institutional/OTC service) and address bc1qu. Of this, 1533 BTC ($87.6M) has been… <a href="https://t.co/NcvqK6HKVZ">pic.twitter.com/NcvqK6HKVZ</a>— Arkham (@ArkhamIntel) <a href="https://twitter.com/ArkhamIntel/status/1810290912976683468?ref_src=twsrc%5Etfw">July 8, 2024</a>
</blockquote> 
Earlier on Monday, the government also sent 250 BTC to Bitstamp and Coinbase and 500 BTC to an unlabeled address, which is most likely an OTC service or another exchange. 
<h2 class="wp-block-heading" id="h-bitcoin-market-reactions-and-price-fluctuations">Bitcoin Market Reactions and Price Fluctuations</h2> 
The Bitcoin price fluctuated in reaction to these transfers. At first, the BTC value fell to a low of $55,000. However, the price slightly recovered to $56,400, which is a 1.2% decline from the previous 24 hours.&nbsp; 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXdiNAhuBqESMKb_8a_xjRxdYxuShSACYKCCOC22ARH03N1CwYdKs7Jv_5BqXzYO7ifUzkwtM3QuHAg257dHavi_gyTDva9LL5VTkMWNYRH61XjDS2OP2xNzE2Up7GrDMY3cu01sLgtvCff596B_0v_RbtWZ?key=cjpnqj_qhvNDeivq8KkFBw" alt="Bitcoin price">
 <figcaption class="wp-element-caption">
 BTC/USD 24-hour price chart (source: <a href="https://coinmarketcap.com/currencies/bitcoin/">CoinMarketCap</a>)
 </figcaption>
</figure> 
However, this price slump was accompanied by a 94.66% rise in trading volume in the same timeframe, showing strong demand for BTC even when it is under selling pressure. 
The market’s response is due to the increased supply of Bitcoin, which entered the market during this summer trading period with low activity. The German government’s selling spree and the ongoing repayments by the bankrupt crypto exchange <a href="https://www.thecoinrepublic.com/2024/07/06/mt-gox-creditors-face-90-day-wait-for-bitcoin-repayment/">Mt. Gox</a> have only amplified the supply-side pressure on the market, affecting the Bitcoin price. 
<h2 class="wp-block-heading" id="h-government-s-holdings-and-strategy-criticisms">Government’s Holdings and Strategy Criticisms</h2> 
The German government is still in possession of over 23,788 Bitcoins, which are worth approximately $13 billion. That’s comparatively lower than the 50,000 Bitcoins the government had at the beginning of the selling process.&nbsp; 
This sequence of actions has led to concerns over the government’s approach and timing, particularly with some parliament members suggesting that BTC should be viewed as a strategic reserve currency. 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXegCdmEyL-WcqRZNzLPk142arQKiXjXG4ZtivC1DEzkGUjkM8cHRxNHG_0i7Sc5LFxAQRT4aw4qOOc1RiIKQEuHWROmJDvffNV4RVQLvpAqjbX5cYr3rrRSqOCMQkK11RnAQ42Qm0hvaJCx3znKs0bCMoa8?key=cjpnqj_qhvNDeivq8KkFBw" alt="Bitcoin price">
 <figcaption class="wp-element-caption">
 German Government Balance (Source: Arkham)
 </figcaption>
</figure> 
Joana Cotar, the German Bundestag member and an active Bitcoin supporter, has spoken out against the government’s approach. According to her, selling BTC without a proper plan is unwise since it fails to tap into the potential of Bitcoin as a strategic asset. Cotar also expressed concerns about the effects of such big liquidations on the market. 
Experts believe this is likely to continue as more of the virtual currency is moved onto the market from these large holders. However, the high trading volume indicates that the selling pressure has not deterred investors from engaging in Bitcoin trading. This interest may help the market normalize in the long term, especially if the trading volume keeps increasing and accommodates the new supply. 
<h2 class="wp-block-heading" id="h-bitcoin-miners-activity-amid-price-corrections">Bitcoin Miners’ Activity Amid Price Corrections</h2> 
The recent Bitcoin price fluctuations have significantly affected the mining industry. In the last week alone, the price of Bitcoin has dropped below $57,000 by more than 10%. It has had a direct impact on the profitability of miners, as profitability has greatly decreased. 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXd9wXiHb6oFvrQdLWOH7cuhqFSjntPCDqpIu2BOqtv0t2v2p6rwOzmfZnSQIbngcpirNraoMYflejv2GJesJzK82HgaMrSxMwjAFVm7s9XWTdYZVoldyJSNkl-jHRXmSgLDR4vZy3xSV0QL65rvEyF4l0w?key=cjpnqj_qhvNDeivq8KkFBw" alt="Bitcoin price">
</figure> 
Although the profitability was lower, the hashrate of Bitcoin did not fall significantly and even increased on July 7 to 691.8 Eh/s. This stability indicates that more miners are joining the network, thus enhancing the network computing power. However, surprisingly, the mining difficulty of Bitcoin dipped to 79.50T on July 5, opposite to the conventional pattern, where increased hashrate raises the mining difficulty. 
Concurrently, according to Glassnode data, Bitcoin miners’ net position change was negative in the last week, which suggests that selling pressure was quite high. However, the miners’ balances increased significantly on July 8, showing that miners have regained confidence in the possibility of a Bitcoin price rise. 
The post <a href="https://www.thecoinrepublic.com/2024/07/09/bitcoin-price-dips-as-germany-moves-16000-btc-to-exchanges/">Bitcoin Price Dips As Germany Moves 16,000 BTC To Exchanges</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.

Bitcoin Price Dips As Germany Moves 16,000 BTC To Exchanges

Table of Contents

Thecoinrepublic.com

Other articles published on Jul 9, 2024

Cardano (ADA) Jumps 5% As Major Governance Node Update Goes Live

Crypto Bigwigs Face Chaos: Polygon Slips, Algorand Battles, While Qubetics Whitelist Emerges Vict...

Tezos Foundation Introduces Mastercard-Compatible Payment Card

MYX Finance Releases Half-Year Recap and Enhanced Roadmap for Trading Services and Incentive Camp...

Toncoin (TON) DeFi Ecosystem Sees Resurgence in Activity

US House Set to Overturn Biden’s Veto of SAB 121 Tomorrow

Join our free newsletter for daily crypto updates!