As a seasoned crypto investor with a keen interest in following the latest developments in the Bitcoin market, I find the German government’s decision to liquidate such a significant portion of its Bitcoin holdings quite perplexing. Having witnessed the volatility and potential of this digital asset over the years, it seems counterintuitive for the authorities to sell at a time when the US Bitcoin Spot ETFs are experiencing consistent inflows.
As an analyst, I’ve been following the German government’s actions regarding their Bitcoin holdings closely. It seems clear now that their objective is a complete liquidation of these assets. The authorities have continued to sell off large quantities of Bitcoin, reducing their overall reserve below the 5,000 BTC mark. These significant transactions are part of the German government’s determined effort to get rid of the Bitcoin that was initially confiscated during various criminal investigations, most notably Movie2k.
Over 90% Of Bitcoin Sold From The German Government’s Holdings
According to recent transactions reported by Arkham, the German government has executed another significant Bitcoin sale, transferring approximately 5,000 Bitcoin worth around $286 million to various exchanges like Flow Traders, Coinbase, Kraken, and Bitstamp. The involved wallet addresses are 139Po and bc1qu. This action has triggered greater scrutiny and speculation regarding the motives behind these transactions.
Four hours before the mentioned transactions, the government carried out a set of transfers totaling 3,250 BTC ($191 million) from the address 139Po to Coinbase, Bitstamp, Kraken, and possibly an institutional deposit or OTC service at Cumberland.
Thursdays reports revealed that approximately 10,627 Bitcoins, equivalent to around $615 million, had been sold by authorities to market makers and crypto exchanges. This sale leaves the government with roughly 4,925 Bitcoins in their reserves, accounting for about 9.9% of the total Bitcoin initially confiscated from the Movie2k operator.
The government’s recent actions regarding Bitcoin have sparked intense debate within the cryptocurrency community. Notable figures in the field have strongly condemned the nation for its persistent Bitcoin liquidation tactics. For instance, Vivek Sen, a journalist at Bitcoin Magazine and founder of Bitgrow Lab, has publicly labeled the authorities as “idiots.”
Based on the journalist’s account, Bitcoin is referred to as the most hard-to-obtain currency in the world, while the government keeps selling it for a currency that can be produced at will. Vivek expressed his discontentment strongly, labeling German government officials as literal fools.
BTC Spot ETFs Sees A 5-Day Consecutive Inflows
Despite the large-scale selling of Bitcoin by the German government causing price drops, US Bitcoin Spot ETFs have experienced substantial inflows in recent days, resulting in five consecutive daily gains.
Thursdays saw a total inflow of $142 million into US Bitcoin spot ETFs, according to analytics provider Sosovalue’s latest report. Particularly noteworthy were the daily inflows recorded by BlackRock ETF IBIT and Fidelity ETF FBTC, which amounted to $72 million and $32 million respectively. Conversely, Grayscale ETF GBTC experienced outflows, resulting in a loss of approximately $37 million.
As a crypto investor, I’ve noticed that since Thursday, the total net inflow of Bitcoin spot ETFs has reached an impressive $15.5 billion, starting from their inception on January 11. This figure underscores the increasing demand and enthusiasm for these investment products.
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2024-07-12 12:42