The German government has made a sharp U-turn from its previous chain activities where it has been selling large swathes of Bitcoin and adding to the selling pressure in the market.
The German government in a surprise move bought back over 1,915 bitcoin worth $111.5 million from various top exchanges.
The transaction was picked up by the industry’s leading On-chain analysis firm Arkham Intelligence who shared the news with their over 460,000 followers on X.
“Update: German Government BTC Movements German Government wallets received 1915 BTC ($111.5M) last night back from addresses linked to Kraken, Bitstamp, and Coinbase.
1047.4 BTC ($57.2M) has been moved out of their wallets this morning: –
547.4 BTC ($30.1M) to Flow Traders
- 500 BTC ($27.1M) to 139Po (likely deposit for institutional/OTC service)” Arkham tweeted.
The crypto exchanges involved in this transaction include Kraken, Coinbase, and Bitstamp and they were also the choice of the German government-linked wallet when it sold millions worth of Bitcoin last week.
This surprising move by the German government has raised a lot of speculation and rekindled optimism amongst industry watchers and global Bitcoin investors.
The German government’s previous Bitcoin selling strategy has created a lot of selling pressure on Bitcoin driving down its price to new lows and raising questions and frustration in the crypto industry.
Besides the buying back of $111.5 million worth of Bitcoin, Data from Arkham Intelligence also revealed that the government transferred 1,047.4 BTC out of their wallets worth $57.2 million.
A significant portion of this, 547.4 BTC valued at $30.1 million, was transferred to Flow Traders. Another 500 BTC, worth $27.1 million, is believed to have been sent for institutional or OTC services.
The German government has been very busy in the crypto market this month making significant moves that impact the prices of crypto assets, especially Bitcoin.
On Tuesday the German government transferred 832.7 Bitcoins, valued at approximately $52 million, with 282.7 Bitcoins out of it sent to major exchanges such as Bitstamp, Coinbase, and Kraken.
The German government two days later made another massive transfer of 3000 bitcoins worth $174 million. The German government-linked wallet now holds a total of 40,526 BTC worth over $2.29 billion.
The activities of the German government in the crypto market have created a lot of volatility affecting the prices of assets. This has worried a lot of industry heads and watchers who brainstormed a lasting solution to the disturbing development.
Justin Sun, the founder and head of the Tron (TRX) crypto project has aired his intention to negotiate with the German government over their Bitcoin strategy to minimize its effect on the market.
What To Know
- The activities of the German government in the crypto market resulted in Bitcoin hitting a shocking low of $53,700 yesterday. At the time of writing this report, Bitcoin has rebounded to $57,000.
- Tron Founder Justin Sun plans to find an efficient solution to the Bitcoin strategy of the German government. He suggested an Off-market transaction to reduce impact and prevent significant price fluctuations.
