Germanys potential plan to cause a decline in Bitcoins value
By mid-June 2024, analysts, investors, and cryptocurrency enthusiasts have become fascinated with tracking the Bitcoin transfers of a unique player in the market: the government of Germany. This Central European country has been moving large amounts of BTC to various exchanges, including Coinbase, Kraken, and Bitstamp. In just the past two days, the German government has deposited 1,700 Bitcoins ($108 million) and currently holds over 47,000 Bitcoins ($3 billion).
The origins of Germany’s Bitcoin have been the subject of much speculation. While there have been unconfirmed reports suggesting that governments around the world have secretly been buying the cryptocurrency for years, the assets can be traced back to a seizure conducted by Germany’s law enforcement.
In January 2024, it was reported that the Saxon State Criminal Police Office had confiscated the Bitcoins from two individuals suspected of operating a piracy website until the end of 2013. It was alleged at the time that the BTC was purchased using the illegal profits from their operation.
The timing of the German government’s Bitcoin deposits is notable, as it coincided with a significant drop in the price of Bitcoin over several days. The cryptocurrency experienced a nearly 10% decrease in value during the last 30 days of trading.
However, it is unlikely that Germany’s actions will have a major impact on the price of Bitcoin, despite holding a substantial amount of BTC. A similar situation occurred about a year earlier when the US government was in the process of offloading a similar amount of Bitcoin seized from the dark web platform Silk Road. This had no significant impact on the crypto markets and did not affect the massive rally that saw the price of Bitcoin climb from $27,000 to $63,682 in late 2023.
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