• The German government sold 900 BTC worth over $54 million on June 25.

• The government’s Bitcoin wallet still holds over $2.8 billion worth of BTC, which could exert significant selling pressure.

The current instability in the crypto market has triggered a surge in transactions as both whales and investors reshuffle assets to navigate the downward momentum. This activity has revived long-dormant wallets and attracted attention from large-scale portfolio holders, including the German government.

German Government Shuffles Bitcoin

A crypto wallet labeled “German Government (BKA)” has sparked a frenzy across the industry, with hundreds of Bitcoins being moved in various transactions across exchanges. On June 25, on-chain intelligence provider Arkham Intelligence spotlighted the transfer of 400 BTC from the wallet, moved in a two-part transaction to crypto exchanges Coinbase and Kraken. The transaction, worth approximately $24.4 million at current prices, occurred around 07:38 UTC. It was followed by another 500 BTC transfer, valued at $30.5 million, to an unnamed address.

These Bitcoin transactions are not the only ones witnessed by the German government in recent weeks. They follow a previous movement of $130 million worth of BTC six days prior. An additional $65 million worth of BTC was moved on June 20, 2024, after which the wallet received approximately $20.1 million back from Kraken and a total of $5.5 million from crypto wallets linked to Coinbase, Robinhood, and Bitstamp.

Despite the weight of its recent transactions, the German government-linked Bitcoin wallet holds a total of 46,359 BTC in balance, worth approximately $2.8 billion at current prices. The frequent asset movements have raised questions of a looming government selloff, triggering fears of an even further decline in the already slipping BTC price.

Bitcoin Price Struggles

BTC has maintained a downward slope for the past month, crashing to new price lows. Despite peaking at a new all-time high of $73,787 earlier in March, Bitcoin has struggled to maintain upward momentum. The crypto market giant also saw a decline below its $60k support level on June 24, 2024, when it fell to $59,812, before resurging to reclaim the value range.

The ongoing downturn has impacted exchange-traded products tied to BTC, with U.S.-based issuers facing a consecutive six-day string of losses totaling approximately $584 million. Similarly, Bitcoin has witnessed significant outflows in recent weeks, totaling approximately $1.2 billion over a two-week period. At press time, Bitcoin is trading at $61,039, marking a 1% increase in the last 24 hours.

However, July could bring additional selling pressure to the Bitcoin market. The collapsed cryptocurrency exchange Mt. Gox has announced it will begin repaying its defunct users. More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 creditors, who have been waiting over a decade to recover their funds. This anticipated distribution could significantly affect Bitcoin’s market dynamics.

Analyst Willy Woo, with over 1.1 million followers, highlighted on June 22 that Bitcoin might experience a cooling period of one to four weeks. This analysis is based on technical chart patterns that indicate a potential correction before Bitcoin’s price action stabilizes.