German Government Transfers $225M Worth of BTC to Centralized Exchanges

Bitcoin has been experiencing a continuous downward trend since mid-June and recently hit an 8-week low of $58,402 at the beginning of this week. Various factors have contributed to this decline, including the announcement made by the now-closed bitcoin exchange Mt. Gox regarding the gradual distribution of assets stolen from clients during a 2014 hack, starting in early July following multiple missed deadlines.

Another significant development influencing the market is the transfer of 3,500 BTC ($225M) by the German government to centralized exchanges (CEX) at an average price of $64,364 over the past week. This transfer has attracted considerable attention.

SpotOnChain reported that 18 hours ago, an additional 900 BTC ($54.76M) were moved by the German Government, with 400 BTC ($24.34M) being sent to Coinbase and Kraken, leaving a balance of 46,359 BTC ($2.88B). This coincided with a 6% decline in BTC value over the week.

Yesterday, the German Government also moved 2,000 BTC, with 1,100 BTC ($72.4M) deposited to CEX, including 500 BTC ($32.6M) each to Kraken and Bitstamp, 40 BTC ($2.61M) to Gemini, 40 BTC ($2.61M) to BitFlyer, and 30 BTC ($1.96M) to Coinbase.

Additionally, it is noteworthy that the German Government previously confiscated 49,857 BTC (then valued at $2.14B) from the operator of the pirated movie website Movie2k on January 16, 2024.

Implications for BTC

The daily Relative Strength Index (RSI) is currently at 33, indicating significant selling pressure on Bitcoin. The actions of the German Government are exacerbating this pressure. Analysts highlight that the TD Sequential signal is suggesting a buy opportunity on the Bitcoin daily chart, predicting a rebound within one to four daily candlesticks for BTC.

For Bitcoin supporters, maintaining positive momentum is crucial. The next key levels to watch are $63,144 and potentially $65,135 if the upward trend persists. Conversely, in a bearish scenario, the price could fall to $58,514.

Highlighted News of the Day

A U.S Congressman has proposed a bill that would allow federal tax payments in Bitcoin.