The German government has recently transferred $225 million worth of Bitcoin (BTC) to centralized exchanges (CEX), drawing attention to the cryptocurrency market. This move comes amidst Bitcoin’s ongoing bearish momentum since mid-June, which led to an 8-week low of $58,402 at the beginning of this week.
One of the contributing factors to the price drop is the announcement by the defunct Bitcoin exchange Mt. Gox, stating that it will distribute assets stolen from clients during a 2014 hack starting in the first week of July. This news has been long-awaited, as the deadlines for asset distribution have been repeatedly postponed over the years.
Additionally, the German government’s recent transfer of 3,500 BTC ($225 million) to CEX at an average price of $64,364 in the past 7 days has caught the attention of market observers. SpotOnChain reported that 18 hours ago, the German government moved an additional 900 BTC ($54.76 million), with 400 BTC ($24.34 million) going to Coinbase and Kraken. Currently, they still hold 46,359 BTC ($2.88 billion), coinciding with a 6% dip in BTC over the past week.
Yesterday, the German government transferred out 2,000 BTC, with 1,100 BTC ($72.4 million) deposited to CEX. This included 500 BTC ($32.6 million) to Kraken, 500 BTC ($32.6 million) to Bitstamp, 40 BTC ($2.61 million) to Gemini, 40 BTC ($2.61 million) to BitFlyer, and 30 BTC ($1.96 million) to Coinbase.
It’s worth noting that the German government had previously seized 49,857 BTC (worth $2.14 billion at the time) from the operator of the pirated movie website Movie2k on January 16, 2024.
Considering the current situation, the daily Relative Strength Index (RSI) stands at 33, indicating significant selling pressure on Bitcoin. The German government’s actions further exacerbate this pressure. However, some analysts suggest that the TD Sequential indicator presents a buy signal on the Bitcoin daily chart, predicting a potential rebound of one to four daily candlesticks for BTC.
For Bitcoin bulls, maintaining momentum is crucial. The next significant milestone lies at the $63,144 mark, with $65,135 also within sight if the upward trend continues. Conversely, if the bears intensify their influence, the price may drop to $58,514.
In other news, a U.S. Congressman has proposed a bill that would allow federal tax payments to be made in Bitcoin, highlighting the growing acceptance and adoption of cryptocurrencies.