HomeNewsBitcoin Struggles Amidst Global Stock Gains: The Impact of German Government Sales

Bitcoin Struggles Amidst Global Stock Gains: The Impact of German Government Sales

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  • Bitcoin’s price drops amid strong US stock market, slipping from $66,436 to $64,544 as per CoinGecko data.
  • German government’s sale of $65 million in Bitcoin to exchanges like Coinbase may be driving the crypto’s decline.

The price of Bitcoin has recently experienced a downturn, despite an otherwise strong performance by the U.S. stock market. This largest cryptocurrency by market capitalization fell to a low of $64,544 from a high of $66,436, as per the latest figures from ETHNews.

This decline in Bitcoin’s value coincides with substantial sales initiated by the German government, potentially explaining the cryptocurrency’s current underperformance.

According to Arkham Intelligence, a data analytics platform, the German government has recently moved $65 million worth of Bitcoin to what are likely exchange accounts, including notable transactions to Coinbase.

The German Government moved $600M BTC yesterday, sending $130M BTC to 4 likely exchange deposits including Kraken and Bitstamp.

Ki Young Ju, the founder and CEO of the on-chain analytics platform CryptoQuant, indicated that this selloff predominantly originated from Coinbase.

Bitcoin selling pressure is originating from Coinbase

Furthermore, this is not an isolated incident, as the German government previously transferred $130 million worth of Bitcoin to various exchanges including Kraken and Bitstamp.

Source: @ArkhamIntel

Despite these sales, the German government still possesses around $3.05 billion in Bitcoin, following a massive seizure of 50,000 Bitcoins from the defunct piracy website Movie2k.to in 2013.

While Bitcoin faces challenges, the U.S. stock market has shown robust performance, bolstered significantly by the surge in Nvidia’s stock value. The tech giant has reached a market capitalization of $3.4 trillion, surpassing the GDP of France and the entire market value of the crypto industry.

Source: Tradingview

This has propelled Nvidia to become the world’s most valuable public company, driving the S&P 500 index briefly above 5,500 for the first time.

The dissonance between the thriving stock market and the flailing cryptocurrency prices is stark. Market analysts suggest that the U.S. Federal Reserve may cut interest rates before November, potentially offering a lifeline to the struggling cryptocurrency market.

A reduction in rates typically loosens monetary policy, which could provide a boost to cryptocurrencies like Bitcoin.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628