The German government has recently moved 400 Bitcoin (BTC) to crypto exchanges Coinbase and Kraken, hinting at a possible sell-off. Bitcoin enthusiast Lark Davis brought attention to this Bitcoin exodus on June 25.
Davis disclosed the details of this transaction involving the transfer of 399.99986110 BTC, equivalent to about $24.28 million, to two different wallets. The transaction, which incurred a fee of 14,490 satoshis ($8.80), was publicly shared at 05:03:56 GMT+10.
This recent transaction is part of a broader series tracked by the on-chain analytical firm Arkham Intelligence last week. During the previous movement, the German government shifted 1,700 BTC across Coinbase, Bitstamp, and Kraken. Despite these movements, the government retains approximately 47,000 BTC, valued at over $2.8 billion.
However, the significant assets holdings in the government-labeled wallet are causing concerns about potential selling pressure. If a large amount of these funds enters the market, it has the potential to drive down the value of Bitcoin below the key psychological level of $60,000.
Government’s Bitcoin exodus potential market impact
At the time of writing, Bitcoin is trading at $61,247.16, with a 24-hour trading volume of $38 billion. Despite a 7% increase in daily trading volume, BTC has a slight decrease of 0.07% in the last 24 hours and a 7% decline over the past week.
Meanwhile, crypto analyst CoinsKid suggests that Bitcoin might be amid a “wave 4 alternation correction.” This theory points out that BTC is currently navigating the C wave of wave 4, potentially signaling a decline in price below the low point observed on May 1. Moreover, CoinsKid emphasizes this remains speculative, with invalidation occurring if BTC reaches a new all-time high without losing the May 1 low.
The analyst further notes that a sustained drop under the 20-week exponential moving average at $61,702 might heighten the probability of this potential outcome. Traders are urged to observe these key technical indicators as the market reacts to the German government’s BTC movements.
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