As a researcher with a background in blockchain technology and finance, I find the recent developments surrounding the German government’s Bitcoin holdings and institutional investors’ reactions to be of great interest.
As a crypto investor, I’ve noticed some concerning news circulating in the market. Reports suggest that the German government has been selling off its Bitcoin stash. This revelation has added considerable downward pressure on the price of Bitcoin. According to on-chain data, they still possess a substantial amount of Bitcoin, leaving them with no choice but to continue selling.
How Much Bitcoin The German Government Holds
According to Arkham Intelligence’s on-chain analysis, approximately 24,000 Bitcoin or around $1.42 billion remain in the German government’s possession. Recent data indicate that they are considering selling more of their holdings. In the past day, they have moved over 1,100 BTC, equivalent to about $68 million, to cryptocurrency exchanges and market makers for possible sale. Among these recipients is Kraken, which received around 800 BTC from the German government.
As a researcher examining the current state of the Bitcoin market, I cannot deny that the German government’s recent actions have had a detrimental effect on it. However, according to a recent report by Coindesk, they were left with no other choice but to sell off these bitcoins. These specific bitcoins were part of the nearly 50,000 BTC that were seized from the operator of the pirated movie website Movie2k earlier this year.
As an analyst, I find it intriguing that the German state of Saxony has declared a movie website as culpable for money laundering and other unlawful activities. Dr. Lennart Ante, the co-founder and CEO of the German Blockchain Research Lab, elucidated to Coindesk that, in accordance with standard procedure, the Saxon government is obliged to liquidate these bitcoins.
Lennart pointed out that the General Prosecutor’s Office in Saxony typically handles the process of selling off seized assets, with a set deadline for completion. He added that it’s likely the police agency is overseeing the bitcoin sales due to their involvement in the initial investigation and familiarity with managing such large digital transactions. Nevertheless, it appears the police are merely following Saxony’s instructions for this process.
Institutional Investors Buy The Bitcoin Dip For The Third Consecutive Day
As the German government persists in selling off its Bitcoin stash, institutional investors view this as a favorable moment to boost their holdings even further. According to Farside Investors’ data, Bitcoin Spot ETFs experienced three successive days of net inflows on July 9.
The Spot Bitcoin ETF funds experienced a combined inflow of $294.8 million and $143.1 million on July 8 and 5, amounting to a total of $216.4 million in recent net inflows. Contrastingly, these ETFs had seen varied cash flows prior to this period. This shift indicates that institutional investors were previously uncertain about increasing their Bitcoin holdings.
As a researcher studying the cryptocurrency market, I’ve noticed that institutional investors seized the chance presented by Bitcoin’s recent dip in price. Their purchases have significantly influenced the crypto’s value, pushing it back up towards $60,000.
Currently, Bitcoin is priced approximately at $59,000 across major exchanges, marking a 3% increase within the past 24-hour period based on information from CoinMarketCap.
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2024-07-11 02:41