The latest German government Bitcoin transfer sparked the interest of crypto users again today. The government continues on its path of exchanging Bitcoin which took place in the last 2 weeks, and it shows no signs of stopping.
Also Read: German Government Sells $951M Worth of Bitcoin in a Single Day
Analyzing the Impact of the German Government’s Latest Bitcoin Transfer
Today, on July 9th, 2024, multiple Bitcoin transfers have been made by the German government address, including the following sums:
- 400 BTC to Kraken
- 2500 BTC to a suspected B2C2 Group address
- 200 BTC to another address
- 1692 BTC were withdrawn from Bitstamp
BTC Speculations and Market Reactions
The series of BTC transfers has made experts speculate about the intentions behind them. Zoltan Vardai from Cointelegraph noted the following:
“Repeated Bitcoin transfers to centralized exchanges suggest the government plans to sell its $2.75 billion in BTC holdings.”
We agree with Zoltan. It is the only possible conclusion, considering the macro-economic situation, and the de-dollarization process of the BRICS nations. Movements of this size are expected to have a big impact on the markets, but only time will tell.
Also Read: German Government Sells Bitcoin Worth $155 Million
For now, we can observe short-term price volatility caused by these transfers. For example, we can use Germany’s government transactions on Monday, which saw 16309 BTC exchanged. As a result, the price of BTC hit a low value of $55000 before bouncing back.
The reaction of this price proves that large-scale Bitcoin movements will indeed cause a stir in the market. This principle applies even more when talking about government entities.
That said, some experts claim that the estimations about their impact might have been exaggerated.
CryptoQuant CEO Ki Young Ju mentioned:
“It’s only 4% of the total cumulative realized value since 2023. Don’t let government selling FUD ruin your trades.”
This crypto exchange surge has also sparked debates within Germany. A German lawmaker, Joana Cotar, has called for the creation of a comprehensive Bitcoin strategy. This is opposed to selling off the assets without a specific plan or direction.
Also Read: Justin Sun Wants To Buy Germany’s Bitcoin Amidst Ongoing Dip
This is what Joana Cotar had to say on the topic:
“I urge you to refrain from hasty disposal of state-owned Bitcoin. Bitcoin could help Germany diversify its treasury assets, hedge against inflation and currency devaluation, and promote innovation in the country.’’
The question remains: Where is Germany’s government going with this strategy?
Even though we can’t answer the question now, we can conclude that we will find out in the next few months.