Today, the latest German Bitcoin transfer has sparked interest among crypto users. It is clear that the government will continue to exchange Bitcoins, as it has done in the past two weeks.
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The Impact of Germany’s New Bitcoin Transfer
The German Government address has made multiple Bitcoin transactions today, July 9, 2024. These include the following amounts:
- Kraken 400 BTC
- A suspected B2C2 address received 2500 BTC
- To another address: 200 BTC
- Bitstamp has withdrawn 1692 BTC
BTC market reactions and speculation
Experts have speculated about the motives behind the BTC transfers. Zoltan Vardai of Cointelegraph made the following observation:
“Repeated Bitcoin transfers to centralized exchanges suggest the government plans to sell its $2.75 billion in BTC holdings.”
Zoltan’s argument is valid. This is the only conclusion that can be drawn, given the macroeconomic conditions and the process of dedollarization in the BRICS countries. The markets are predicted to react strongly when such movements occur, but the impact will only be known with time.
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This volatility is only temporary. We can take the Monday government transaction in Germany, where 16309 BTC were exchanged. BTC dropped below $55000 and bounced back.
This price’s reaction proves the impact of large Bitcoin moves on the market. The principle is even more relevant when it comes to government institutions.
Some experts believe that estimates of their impacts may have been exaggerated.
CryptoQuant CEO Ki Young Ju mentioned:
“It’s only 4% of the total cumulative realized value since 2023. Don’t let government selling FUD ruin your trades.”
This surge in crypto exchanges has also generated debates across Germany. Joana Cotar is a German legislator who has called for a Bitcoin strategy. The idea is to avoid selling assets that have no direction or plan.
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Joana Cotar’s thoughts on this topic.
“I ask you to avoid a hasty sale of the Bitcoin state owned. Bitcoins could be used to diversify Germany’s treasury, protect against currency devaluation or inflation, and encourage innovation.
It remains to be seen where the German government is going with its strategy.
We can only assume that the answer will be revealed in due course. next Few months.
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Source: watcher.guru