The recent sell-off by the German government and outflows from Bitcoin ETFs have caused the price of Bitcoin to drop below $65,000. On the other hand, big players like MicroStrategy are buying on every dip.
The past week has seen a sharp increase in bitcoin whale activity, in what appears to be the traditional tug-of-war between bulls and bears. The German government has transferred about $110 million worth of bitcoins to three different cryptocurrency exchanges—Kraken, Coinbase, and Bitstamp—in the past two days. But compared to the government’s reserves of 43 billion bitcoins, this is absolutely insignificant.
Bitcoin worth $3 billion, held by Germany, appears to be on the radar
The German government has been liquidating its bitcoin holdings over the past two days, as indicated by on-chain activity. According to CEO of CryptoQuant’s Young Ju, Germany has seized a total of 50,000 bitcoins over the past several years and is sitting on substantial unrealized profits despite recently selling 3,000 BTC.
The recent increase in the price of Bitcoin has valued Germany’s current BTC holdings at $3.24 billion, including $1.1 billion in unrealized profit. Germany is now the fourth-largest Bitcoin holder, following the United States, China, and the United Kingdom. The US currently holds 213,246 bitcoins, worth $13.7 billion. China, on the other hand, continues to maintain 190,000, after selling a large hoard in 2019 and implementing the Bitcoin ban in 2017.
Bitcoin is currently under selling pressure, with the cryptocurrency’s price dropping below $65,000. This is due to the recent sell-off from the German government as well as significant withdrawals from spot ETFs.
BTC Whale In Action
While the German government has been offloading its stake, other Bitcoin whales have been scooping supplies at each drop. On Thursday, June 20, Michael Saylor’s MicroStrategy announced a new acquisition of 11,931 Bitcoin with the proceeds from the $800 million convertible notes.
Additionally, on-chain data shows that a Bitcoin whale purchased roughly 6,500 Bitcoins for $430 million in a single transaction on Thursday.
This suggests that there are enough buyers in the market to meet every selling pressure. But given the capitulation of Bitcoin miners, the correction in cryptocurrency prices is probably going to be delayed until late summer.
