According to Arkham data, the German government transferred as many as 2,800 Bitcoins on Monday (July 1) and Tuesday. According to the Bitcoin price at the time of writing (61,845USD), the total amount transferred The number exceeded US$170 million.
On Monday and Tuesday, the German government sent 200 Bitcoins, 350 Bitcoins, and 132.74 Bitcoins to three decentralized exchanges: Coinbase, Bitstamp, and Kraken respectively. The total number reached 682.74.
In total, the German government has transferred more than 3,000 Bitcoins to decentralized exchanges (CEX) since the past two weeks.
In addition, the German government continued to transfer 361.877 Bitcoins (worth approximately $22.65 million) to market maker Flow Traders on Tuesday. Combined with the 345.338 Bitcoins (worth approximately $21.23 million) transferred to Flow Traders last week, the total reaches 707.149 Bitcoins.
What is even more noteworthy is that the German government also transferred a total of 1788.14 Bitcoins (worth approximately US$112 million) to an unknown address named 139PoPE1bKQam8QJjhVjYDP47f3VH7ybVu on Monday and Tuesday. It is currently unclear whether this address is an exchange.
According to Bitcoin Treasures data. After these two days of Bitcoin transfers, the German government currently ranks fifth in the world in government holdings with 43,359 Bitcoins, down one place from last week and behind Ukraine.
Since the German government seized a huge amount of Bitcoin from the pirated movie website operator Movie2k in January, frequent changes began to occur until half a month ago. As the German government dumped Bitcoin on June 18, the price of Bitcoin fell by about $5,000.
Regarding the German government’s recent frequent changes in the Bitcoin market, market analysts believe that the government may believe that the current sales price of Bitcoin is conducive to selling, indicating a short-term bearish outlook. However, the fact that the government still retains a significant portion of its holdings points to a long-term bullish outlook for Bitcoin’s value.
Raj A. Kapoor, founder of the Blockchain Governance Council, analyzed the German government’s selling behavior and expressed his opinion: “Such a major change may create uncertainty and fear among investors. He added that a large amount of Bitcoin transferred like this by the government “Major entities may be interpreted as a lack of confidence in Bitcoin or a precursor to regulatory action, triggering a sell-off.”
This may reflect that cryptocurrencies such as Bitcoin will be restricted by MiCA regulations in EU countries in the future, which will affect normal transactions.
These recent moves by the German government demonstrate the government’s ability to influence the cryptocurrency market through regulatory actions and direct participation in the market.
The results of this behavior will change the traditional view of government and cryptocurrency. The government not only acts as a regulatory agency, but also directly participates in the market. By acting as a cryptocurrency whale, the government can exert pressure on the market. According to its ideas, it can achieve the purpose of stabilizing the market or exacerbating market fluctuations.
Second, these actions highlight a broader trend of government involvement in crypto markets. Governments around the world have recognized the value and influence of cryptocurrencies and are looking for ways to incorporate them into their economic strategies.
Germany’s actions could set a precedent for other governments to increase their involvement in the crypto market. In the future, perhaps the cryptocurrency market will also become one of the economic strategic plans of various countries.
The recent actions of the German government are viewed within the macro context of global economic conditions and cryptocurrency markets. The crypto market is increasingly becoming a battlefield for regulation and financial control. Governments are keenly aware of the potential of cryptocurrencies to disrupt the traditional financial system, and there is an urgent need to clarify the positioning of the crypto market through such pilot experiments.
The German government’s participation in the Bitcoin market as a crypto whale highlights the changing relationship between governments and the crypto market.
By strategically selling large amounts of Bitcoin, Germany not only influenced market prices but also demonstrated its understanding and involvement in digital assets. These actions could have a lasting impact on market behavior, regulatory approaches, and the widespread adoption of cryptocurrencies.
As other governments observe Germany’s approach, similar strategies may emerge, further intertwining national economic policy with global crypto markets. These complex and multifaceted interactions will undoubtedly shape the future of Bitcoin and other cryptocurrencies.
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