Is Germany Getting Ready to Cause Bitcoins Price to Plummet

In mid-June 2024, analysts, investors, and blockchain enthusiasts have turned their attention to tracking the cryptocurrency transfers of a unique group of Bitcoin whales: the government of Germany. The Central European country has been moving large amounts of BTC to various exchanges, including Coinbase, Kraken, and Bitstamp. Over the past two days alone, the German government has deposited 1,700 Bitcoins, totaling over 47,000 in their holdings.

The origin of Germany’s Bitcoin has been a topic of speculation, with some unconfirmed reports suggesting that governments worldwide have been secretly purchasing the cryptocurrency for years. However, the assets can be traced back to a seizure conducted by Germany’s law enforcement. In January 2024, the Saxon State Criminal Police Office took possession of the Bitcoins from two individuals suspected of operating a piracy website until the end of 2013. It was alleged that the BTC was purchased using the illegal profits from the operation.

The timing of the German government’s activities is notable, as their deposits coincide with a significant drop in the price of Bitcoin over several days. The cryptocurrency has fallen nearly 10% in the last 30 days of trading. Despite holding a substantial amount of BTC, it is unlikely that Germany’s actions will have a significant impact on the price.

A similar situation occurred approximately a year earlier when the U.S. government was moving a comparable amount of Bitcoin seized from the dark web platform Silk Road. However, the offloading of those assets had no major effect on the crypto markets and did not hinder the massive BTC rally that began in late 2023, pushing the price from $27,000 to $63,682.

Disclaimer: The content on this site should not be considered as investment advice. Investing in cryptocurrencies is speculative, and there is a risk of capital loss.