On Thursday, bitcoin prices took another downturn while the German government went on another selling spree. Blockchain data from Arkham Intelligence reveals that during the day, the German government transferred 10,567 BTC worth over $600 million in multiple batches to cryptocurrency exchanges.
German government bitcoin selling sends price down again
According to data, the German government sent BTC worth $600 million to crypto exchanges like Bitstamp, Coinbase, Kraken, and other service providers like Flow Traders and Cumberland DRW from Bitcoin wallets associated with the German authorities.
After today’s transactions, the authorities’ wallets held 4,925 BTC or $285 million at current rates; this is a decrease from the 50,000 BTC, or nearly $3 billion, they had three weeks ago when they began selling the assets.
The move sent Bitcoin prices down, which are currently trading down 0.7% at $57,339.34, according to data from CoinMarketCap.
German government’s previous bitcoin-selling move
The German government had previously moved roughly 16,309 BTC in many batches to external addresses, including market makers Cumberland DRW and Flow Traders and cryptocurrency exchanges Bitstamp, Kraken, and Coinbase.
As previously reported by Bankless Times, the German government has been continuously selling Bitcoin, which has hindered the trade of the largest cryptocurrency by market capitalization.
Another instance of this frenzy, excluding today’s trade, was the $13 million that the German government sent to Coinbase. That being said, this is hardly the series’ first action. One of the country’s government agencies transferred $425 million worth of Bitcoin to a different wallet.
The German government began trying to sell off its Bitcoin assets in January. In the same month, German officials announced that they had seized 50,000 Bitcoin, believed to be Germany’s largest seizure at the time.
What will happen to Bitcoin prices in the future?
Bitcoin has been experiencing disappointing trading for the past month. The market desperately needs a bull run to recover from its post-halving woes. While macroeconomic factors like inflation and unemployment seem to be slowly coming in line with analyst and Fed expectations, it is still unclear when BTC might undergo the next bull run.
According to Arsen, the accumulation of Bitcoin by smart money, which includes market analysts, institutional investors, and other financial specialists, throughout the last correction cycle suggests their long-term positive inclination towards the leading cryptocurrency.
At present, Bitcoin’s price is mimicking its previous bull cycles that occur every four years. For example, during its 800-day first bull cycle in 2012, the price of Bitcoin increased by an astounding 9,000%.
In the ensuing cycles, which took place in 2016 and 2020 and lasted roughly 800 days each, the price of Bitcoin increased by almost 3,000% and 1,200%, respectively. However, one thing to notice here is that before all these price rises, Bitcoin had tumbled significantly, which is also happening right now.
