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German Government Agency Sends $425 Million Worth of BTC to Exchanges — TradingView News
Bitcoin (BTC) recently fell to a one-month low of $64,000, causing concern among bullish investors who now fear impending selling pressure and a potential retest of lower support levels.
Adding to these concerns, it has come to light that a wallet belonging to German police moved $425 million worth of BTC on cryptocurrency exchanges, according to on-chain data firms. This development has sparked speculation about the agency’s intentions and potential impact on the market.
Sales pressure concerns
On Wednesday, crypto analytics firm Arkham detected a major cryptocurrency wallet named “German Government (BKS),” which transferred 6,500 BTC, equivalent to $425 million.
The wallet, which held over 50,000 BTC as of late January 2024, moved the funds to a new address. A portion of the transferred BTC was sent to popular exchanges Kraken and Bitstamp.
BTC News
The recent movement of BTC by the German government agency follows a significant seizure of 50,000 BTC in January. At the time, it was considered the largest cryptocurrency seizure ever conducted in Germany.
Most of the BTC was seized by the German police, and the suspects voluntarily transferred them to official wallets provided by the German Federal Criminal Police Office (BKA). The government wallet currently contains 43,350 BTC with a total value of over $2.8 billion.
Crypto analyst Daan Crypto Trades suggested that the transfer of BTC from the German government wallet to exchanges may have contributed to the emergence of short positions and a slight decline in the price of Bitcoin during Wednesday’s trading session. This move raises concerns about potential selling pressure in the market and its impact on Bitcoin’s price trajectory.
Bitcoin faces a downtrend signal
When it comes to analyzing the price action of the largest cryptocurrency on the market, BTC is at a crucial juncture as analysts offer mixed perspectives.
Technical analyst Ali Martinez suggests a potential continuation of the downtrend as Bitcoin’s recent breach of the +0.5σ market value to realized value (MVRV) price range at $67,890 indicates the potential for a correction towards the mid-price range at $54,930.
Martinez points out that when MVRV is below the 1-year simple moving average (SMA), it often signals a downtrend. This analysis suggests that BTC may experience further downward price pressure due to the heavy distribution at the top.
In contrast to Martinez’s bearish outlook, another analyst who uses the pseudonym “Titan of Crypto” remains bullish on the Bitcoin bull market.
The analyst points to the Parabolic SAR indicator and the LMACD (Logarithmic MACD) on the 2-month chart, indicating that the bull market is still intact. According to the analyst, these indicators suggest that BTC’s bullish momentum remains intact.
However, the future direction of Bitcoin’s price remains uncertain, with investors cautiously navigating evolving market conditions.
At the time of writing, BTC was trading at $64,850, down more than 7% in the last seven days alone, demonstrating the bearish sentiment surrounding the Bitcoin market.
Featured image from DALL-E, chart from TradingView.com