German Government Transfers Another 2,700 Bitcoins to Exchanges, Now Holds 6,394 Coins
Highlights:
- German Govt. transfers 2,700 BTC, reducing holdings to 6,394 BTC, a 90% decrease from the initial.
- Bitcoin rebounds to $57,000 after dropping to $53,500, driven by significant inflows into spot BTC ETFs.
- Analysts predict Bitcoin could reach $330,000 in the current bull cycle despite the recent decline.
According to data from Arkham Intelligence, the German government transferred another 2,700 Bitcoins to linked with centralized exchanges like the B2C2 Group and an OTC service address on July 12.
German Goverment started selling coins on July 12. At 15:02 UTC+8, it transferred a total of 1,200 BTC to Bitstamp, Kraken and Coinbase (400 BTC each), transferred 1,000 BTC to the suspected B2C2 Group: 139PoP…H7ybVu, transferred 500 BTC to the unmarked address: bc1qu3…guzr4j.…
— Wu Blockchain (@WuBlockchain) July 12, 2024
At around 7:00 a.m. UTC on Friday, the German government sent 500 Bitcoin (approximately $28.63 million) to the wallet address “bc1qu…guzr4,” which is a presumed OTC service institutional deposit address. Shortly after, the German authorities transferred 400 BTC each to centralized exchanges Coinbase, Kraken, and Bitstamp. The German authorities also sent 1,000 BTC to a wallet address associated with the B2C2 Group, as identified by Arkham.
Extensive Transactions Deplete German Government’s Bitcoin Holdings
The German government seized 49,857 BTC during a crackdown on a film pirating website in January. Since then, these Bitcoin holdings have been involved in extensive transactions. The Bitcoin wallet now holds only 6,394 Bitcoin, marking a 90% decrease from its initial holdings. This series of transactions has drawn criticism from a German lawmaker and BTC activist, Joana Cotar. She argued that Bitcoin could have served as a strategic reserve currency amid traditional financial risks.
Meanwhile, BTC’s value fell 1.65% in the past 24 hours to $57,171, according to CoinMarketCap.
Bitcoin Rebounds to $57,000 Amid Strong Inflows to US Spot BTC ETFs
After falling to $53,500 earlier this week, Bitcoin has rebounded to $57,000. Despite the German government selling this week, inflows into spot Bitcoin ETFs have remained robust, aiming to counteract the selling pressure.
BTC ETFs Record $79M Net Inflows, Fifth Consecutive Day of Gains
On Thursday, the US-based spot Bitcoin ETFs saw a daily net inflow of $78.93 million, marking the fifth consecutive day of positive inflows. According to data from Farside Investors, BlackRock’s IBIT, the largest spot Bitcoin ETF by net asset value, led the day with the highest net inflows of $72.1 million. Fidelity’s FBTC also saw net inflows of $32.7 million.
Bitwise’s spot Bitcoin fund attracted $7.5 million, and Ark Invest and 21Shares’ ETF combined added $4.3 million. However, Thursday saw net outflows from Grayscale’s GBTC amounting to $37.7 million. Six other ETFs, including VanEck’s HODL, reported zero flows yesterday.
Analyst Sees Bitcoin Hitting $330K in Current Bull Cycle
Despite Bitcoin’s recent decline, independent market expert Arsen remains optimistic, predicting it will rise to $330,000 in the current bull cycle. Arsen argues that smart money—institutional investors, financial professionals, and market experts—has been accumulating Bitcoin during its recent correction, signaling a long-term bullish outlook for the cryptocurrency.
Arsen sees the current decline as part of Bitcoin’s four-year bull cycles, which typically feature significant price gains. He notes the first bull cycle in 2012 saw a 9,000% increase over 800 days. Subsequent cycles in 2016 and 2020 were similar in duration but had smaller gains of 3,000% and 1,200%, respectively. Arsen predicts Bitcoin could rise by 450% in the current cycle, potentially reaching $330,000.
While you're being scared, smart money is doubling down.
That’s because this dip is nothing new.
As you can see, Bitcoin goes to a new all-time-high every 4 years:
2012: Bitcoin goes from $12 to $1000 = ~9,000% increase
2016: Bitcoin goes from $650 to $19K = ~3,000% increase… pic.twitter.com/gxHsEwzLBs— Arsen | Bitcoin Therapy 📧 (@satoshibaggins) July 10, 2024
Syed Ali Haider
Syed Ali Haider is a contributing crypto writer for Crypto2Community. He is a crypto and blockchain journalist with over six years of experience. Syed Ali is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years. Haider has been featured in a number of high-profile crypto and finance outlets, including Coincult and more.
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