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The cryptocurrency market is experiencing severe price declines due to increased volatility. Today's on-chain analysis revealed that a German government-designated cryptocurrency wallet sold 900 Bitcoin, raising concerns that the price of BTC could fall below $60,000.
The German government cryptocurrency wallet moved an additional 900 Bitcoin ($BTC) in three separate transactions today. The transaction raised concerns that $BTC could fall below the crucial $60,000 level.
Millions of dollars of seized Bitcoin were sent to major exchanges.
A wallet linked to the German Federal Criminal Police Agency (BKA) transferred 900 Bitcoin to a major cryptocurrency exchange today. According to data from blockchain analysis company Arkham, the wallet sent $200 BTC to Coinbase, $200 BTC to Kraken, and $500 BTC (worth more than $30 million) to an unknown wallet '139Po'.
The wallet “139Po” is not yet known, but the German government has interacted with it before. On June 19th, the government sent 500 BTC to that address, and on June 20th, it sent an additional 800 BTC.
Update: German Government Sells Additional $24M BTC.
In the last two hours, the German government moved 400 BTC to exchange deposits on Kraken and Coinbase.
They also transferred 500 BTC to address 139Po. We have not yet confirmed where these funds will go. pic.twitter.com/D6QCUv9Jgx
— Arkham (@ArkhamIntel) June 25, 2024
After the transfer, the wallet still holds 46,359 BTC, worth approximately $2.8 billion.
Bitcoin in a downward trend: can the German government push it to the breaking point?
Bitcoin is currently on a sustained decline, down over 10% on the monthly chart and over 3.95% over the past 7 days. Market sentiment is overwhelmingly negative, with the Fear Greed Index falling from extreme greed to fear in one week.
An announcement from the now-defunct cryptocurrency exchange Mt. Gox caused the price of BTC to drop yesterday, momentarily reaching $58,500. At the same time, the price has recovered somewhat and $BTC is competing to stay above the critical $60,000 level. Mt. Gox announced that it will begin distributing $9 billion in Bitcoin and Bitcoin Cash ($BCH) redemptions starting in early July. After decades of waiting after an infamous hack in 2014 that resulted in the loss of 740,000 bitcoins, Mt. Gox creditors are finally getting some relief.
Creditors are desperately waiting to be repaid, but this is likely to put selling pressure on the Bitcoin market.
A recent German government transfer to Mt. Combined with Gox's plan, this could be the catalyst to send $BTC below $60,000.
At the time of writing, $BTC is trading at $61,864 on the 24-hour chart, up 4.47%.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
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