German And US Governments Are Selling Bitcoin While El Salvador Holds

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As an analyst with a background in financial markets and experience following the crypto space, I find the recent development involving the US and German governments’ potential Bitcoin sales to be a significant concern for the crypto market, particularly Bitcoin (BTC). The on-chain data indicating large transfers of BTC from these governments to crypto exchanges has raised fears of additional selling pressure.

The cryptocurrency market, with Bitcoin (BTC) leading the way, could experience a potential price drop due to recent news. Reports indicate that both the US and German governments may be planning to sell significant portions of their Bitcoin reserves.

US Government Send $240 Million In Bitcoin To Coinbase Prime

In a recent update on their on-chain analysis platform, Arkham Intelligence disclosed that approximately 3,940 Bitcoins worth around $240 million were transferred from the US government to Coinbase Prime. This revelation has sparked concerns among cryptocurrency market observers, as there is speculation that the government could be planning to sell these coins, potentially increasing downward pressure on Bitcoin prices.

Arkham disclosed that the bitcoin in question was among the assets confiscated from Banmeet Singh during his recent trial on narcotics charges. Notably, it emerged that Singh had used the dark web marketplace, Silk Road, to peddle illegal substances – an online platform infamous for its Bitcoin transactions, a significant chunk of which has been seized by the US authorities.

German And US Governments Are Selling Bitcoin While El Salvador Holds

As a cryptocurrency market analyst, I’ve observed that the US government has previously disposed of some of their seized Bitcoins from the Silk Road marketplace. This action led to noticeable selling pressure for Bitcoin. Their most recent confirmed sale took place in March, when they sold 9,861 BTC, equivalent to around $216 million at that time. However, there is no confirmation yet regarding the 3,940 BTC they transferred to Coinbase. This lack of confirmation implies that these Bitcoins have not been sold in the market yet.

The US government isn’t alone in making large Bitcoin transactions. According to Arkham Intelligence, the German government has transferred significant amounts of Bitcoin to various exchanges recently. They moved 125 Bitcoins each to Kraken and Bitstamp, adding to the previous transfers of 400 Bitcoins to Kraken and Coinbase. Additionally, they transferred 1,000 Bitcoins to an unknown wallet address (139Po), which could potentially be another crypto exchange.

The impending Bitcoin sale by the US and German governments adds to the concern, given that Bitcoin is currently undergoing significant selling pressure. According to Bitcoinist, approximately 30,000 BTC or $2 billion have been sold by miners this month, significantly exacerbating the crypto’s downturn since its start.

Another Government Chooses To Hold

As the US and various governments continue to sell off their Bitcoins, El Salvador has taken a contrasting approach by consistently adding to its Bitcoin holdings. Notably, El Salvador legally recognized Bitcoin as tender in September 2021 and implemented a “1 Bitcoin per day” program in November 2022, which involves purchasing a single Bitcoin each day.

According to Arkham Intelligence’s latest data, Arkham Intelligence has remained consistent with its Bitcoin acquisition strategy, amassing a total of 5,794 BTC, equivalent to approximately $351.82 million. El Salvador, in addition, has persisted in expanding its Bitcoin holdings through external investments and mining activities. Bitcoinist recently disclosed El Salvador’s intention to establish a Bitcoin bank to entice foreign investors with the allure of seamless Bitcoin investment opportunities.

German And US Governments Are Selling Bitcoin While El Salvador Holds

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2024-06-27 17:12