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Is Germany about to Cause BTC to Drop Further

German government transfers 1,700 Bitcoins in two days amid market fluctuations

June 21, 2024 01:52 PM

Reading time: 1 minute, 22 seconds

TL;DR Germany has been moving vast quantities of Bitcoin to exchanges like Coinbase, Kraken, and Bitstamp. The government deposited 1,700 Bitcoins worth $108 million in the last two days. This activity comes at a sensitive time as Bitcoin prices have significantly dropped.

Germany's Bold Crypto Moves

Indeed, Central European countries have been moving vast quantities of BTC to numerous exchanges, including Coinbase (NASDAQ: COIN), Kraken, and Bitstamp.

In the last two days, the German government deposited 1,700 Bitcoins ($108 million) and holds over 47,000 BTC ($3 billion).

Origins of Germany's BTC Stash

Though there have been many theories as to the origins of Germany's BTC—including the alleged but mostly unconfirmed reports that governments worldwide have been buying the cryptocurrency in secret for years—the assets can be tracked to a seizure conducted by the nation's law enforcement.

Indeed, in January 2024, it was reported that the Saxon State Criminal Police Office took possession of Bitcoins from two individuals suspected of operating a piracy website until the end of 2013. At the time, it was alleged that the BTC was purchased using the illegal profits from the operation.

Market Impact and Sensitivity

The German government's activities came at a relatively sensitive moment, as their deposits coincided with a significant, multi-day drop in the price of Bitcoin, which saw the cryptocurrency fall nearly 10% in the last 30 days of trading.

"Nonetheless, it is relatively unlikely that Germany will significantly contribute to a price drop despite holding nearly 50,000 BTC."

Historical Precedent

Approximately a year earlier, certain observers and members of the crypto community were fearful that the U.S. government was moving a similar amount of Bitcoin seized from the dark web platform Silk Road.

The offloading of the assets had no major impact on the crypto markets and, indeed, had no impact on the massive BTC rally that started late in 2023 and saw it climb from about $27,000 to $63,682—the Bitcoin price today.

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