The crypto market is experiencing increased volatility, resulting in severe price drops. Today’s on-chain analysis revealed that a German Government-labelled crypto wallet sold 900 Bitcoin, leading to concerns that $BTC may drop below its key $60,000 mark.
A German government crypto wallet moved another 900 Bitcoin ($BTC) in three individual transactions today. The transactions have sparked fears that $BTC may drop below its critical $60,000 level.
Millions in Seized Bitcoin Sent to Major Exchanges
A wallet connected to the German Federal Criminal Police Office (BKA) transferred 900 Bitcoin to major crypto exchanges today. According to data from blockchain analysis firm Arkham, the wallet sent 200 $BTC to Coinbase, 200 $BTC to Kraken and 500 $BTC (worth over $30 million) to an unknown wallet, “139Po”.
While wallet “139Po” remains unknown, the German government previously interacted with it. On June 19, the government sent 500 BTC to the address and another 800 on June 20.
UPDATE: German Government selling additional $24M BTCIn the past 2 hours the German Government has moved 400 BTC to exchange deposits at Kraken and Coinbase.They have also moved 500 BTC to address 139Po. We have yet to see where these funds are moved. pic.twitter.com/D6QCUv9Jgx
— Arkham (@ArkhamIntel) June 25, 2024
After the transfers, the wallet still holds 46,359 BTC, worth around $2.8 billion.
Bitcoin on a Downtrend: Could German Government Push it Over the Edge?
Bitcoin has been on a sustained downward trajectory, currently down over 10% on the monthly chart and 3.95% over the past seven days. Market sentiment is overwhelmingly negative, with the Fear and Greed Index dropping from extreme greed to fear in a matter of a week.
An announcement from the now-defunct crypto exchange Mt. Gox forced $BTC down yesterday, with the price momentarily touching $58,500. At the same time, the price recovered somewhat, and $BTC battles to hold its position above its critical $60,000 level. Mt. Gox announced it will begin distributing $9 billion in Bitcoin and Bitcoin Cash ($BCH) repayment from the beginning of July. Following a decades-long wait, Mt. Gox creditors will finally receive some relief after an infamous hack in 2014 resulted in the loss of 740,000 bitcoin.
While creditors eagerly await their repayments, they will likely add selling pressure to the Bitcoin market.
The recent transfers from the German government, coupled with Mt. Gox’s plans, could be the catalyst to send $BTC below $60,000.
At the time of writing, $BTC traded at $61,864, up 4.47% on the 24-hour chart.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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