In a significant development that has stirred the cryptocurrency community, the German and American governments have collectively transferred a staggering amount of over $106 million in cryptocurrency. The German government made a notable transaction of 1,500 Bitcoin (BTC), currently valued at $94.7 million, including 400 BTC, which is worth $25.3 million sent to major cryptocurrency exchanges such as Bitstamp, Coinbase, and Kraken. This move indicates a possible intent to sell the assets.
Since June 19, 2024, Germany has been actively engaging in the cryptocurrency space, moving a total of 5,167 BTC, which is the equivalent to approximately $330.3 million based on an average price of $63,924 for each Bitcoin. Currently, the German government is holding 44,692 BTC in its reserves, valued at around $2.81 billion, showcasing the country’s substantial investment in the digital asset.
On a separate note, the United States government has been involved in a significant Ethereum (ETH) transaction by transferring 3,375 ETH, an amount worth $11.75 million, to a new crypto wallet. This represents the first sizeable ETH move since April 4, 2024, when 4,567 ETH worth $15.2 million was transferred. Presently, the US government’s Ethereum holdings amount to 49,320 ETH, with an estimated value of $172 million.
The combined value of the moved cryptocurrency by the two governments totals to $106.45 million. Such extensive transfers have ignited discussions among traders, investors, and analysts regarding the possible ramifications on the cryptocurrency market, especially in light of the hopeful anticipation for a bullish rebound in July among many in the crypto community.
Further insight into these moves suggests that continued sell-off activities by these governments could introduce downward pressure on cryptocurrency market values. This is particularly concerning with the upcoming Mt. Gox saga’s impending Bitcoin and Bitcoin Cash (BCH) repayments scheduled for July 2024. This event is highly anticipated to prompt a significant sell-off, which could potentially impact the market prices further.
Crypto analyst Edo Faroma speculates that these government actions may be guided by insider insights or strategic financial planning, especially as the community looks forward to a market recovery in July. Historical data from Coinglass provides support for expectations of significant gains during this period. Nonetheless, the possibility of these government moves being precursors to broader market trends cannot be ignored and warrants careful observation by those invested in the cryptocurrency sector.
