Germany Government’s Bitcoin Sales Impact Market Recovery Pace

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The Germany government has recently ignited headlines in the cryptocurrency world with the announcement it has started selling millions of dollars worth of Bitcoin (BTC) obtained from a confiscated wallet. While governments have been known to sell seized assets, this departure is a rare move within the realm of digital money. These recent sales indicate the possible contributing factor to the current sluggish recovery pace of the Bitcoin market.

Critics have pinpointed the increased, aggressive sale activity, and unprecedented sale by Bitcoin aficionados, or ‘whales’ as they are colloquially known, for the recent correction in the Bitcoin price. This purchasing turbulence has resulted in a halt in the currency’s ability to stabilize above a value of 70,000 dollars, subsequently hindering its chances of retesting its former all-time high price record.

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Blockchain analysis platform, Arkham, has been closely monitoring the German government’s actions which indicate the start of their Bitcoin sales on cryptocurrency exchanges. Evidence from a recent Thursday morning trading session showed a movement of 65 million dollars worth of Bitcoin towards two probable exchange deposits.

This isn’t the first time news has emerged of the German government flexing its cryptocurrency muscles. It was reported on a recent Wednesday that the German government orchestrated a staggering 600 million dollar worth of Bitcoin transfers, sending 130 million dollars’ worth to four probable exchange deposits. Arkham’s records maintain the German Government is still in possession of 3.05 billion dollars worth of Bitcoin.

The German law enforcement’s tryst with cryptocurrency became news earlier in the year. In January, police apprehended 50,000 Bitcoin (valued at 2.17 billion dollars) marking the largest cryptocurrency seizure in the country. The captured cache was surprisingly surrendered voluntarily by the suspects who relocated their Bitcoin to official wallets administered by the Federal Criminal Police Office (BKA).

In the Whale world, a substantial sale of 1.2 billion dollars worth of Bitcoin over the past fortnight seems to have aggravated the already turbulent market.

Technical analyst, Mags, shared interesting insights into the current price trajectory of Bitcoin citing two possible scenarios. Scenario one involves a mid-range reclaim triggered by the recent boost that temporarily inflated the price above 66,000 dollars, hinting at a downward turn as the currency is currently valued at just under 65,000 dollars.

For the second scenario, Mags emphasized the significance of an important support level near the range low of 60,500 dollars in determining the potential future trajectory of Bitcoin’s price. If Bitcoin reclaims the mid-range level in this scenario, it could potentially charge back towards the range high, inferring a bullish trend continuation.

Alternatively, if Bitcoin retests the range low before moving higher, it might lead to a protracted period of sideways movement, potentially prolonging the consolidation phase.

However, even in this range-low scenario, Mags keeps a bullish stance as the overall higher time frame structure remains optimistic. Reports and trends show that despite current hurdles and market swings, the daily Bitcoin is still trending downward.