German Government’s Bitcoins Continue to Put New Pressure on the Market

Key Points:

• The German government transferred significant Bitcoin amounts, causing a nearly 8% market decline.
• Bundestag member Joana Cotar criticized the German government’s Bitcoin selling, citing privacy and financial concerns.
• The Mt. Gox trustee began Bitcoin and Bitcoin Cash repayments to creditors, impacting market focus on U.S. Federal Reserve policies.

The German government made significant Bitcoin transfers today, impacting the cryptocurrency market.

German Government’s Bitcoin Transfers Impact Market

According to blockchain analytics platform Arkham, the government transferred 133,722 Bitcoins to market maker Cumberland DRW, 150 coins to crypto exchange Kraken, and 1,000 coins to the B2C2 Group. Additional German government’s Bitcoin transfers included 300 coins each to Coinbase and Bitstamp, and 1,000 coins to market maker Flow Traders.

Earlier transactions on Monday involved moving 250 Bitcoins to Bitstamp and 250 Bitcoins to Coinbase. Additionally, 500 BTC, valued at $27.9 million, was transferred to an unidentified wallet address labeled “139PoP.” Since June 19, the German government has been transferring substantial amounts of Bitcoin to various exchanges and the same wallet address, contributing to a nearly 8% decline in Bitcoin’s value.

Bundestag Member Criticizes the Bitcoin Selling

The German government’s Bitcoin selling has significantly impacted the cryptocurrency market. Joana Cotar, an independent member of the German Bundestag, has previously voiced support for Bitcoin and opposed the European Central Bank’s (ECB) proposal for a digital Euro.

In a recent parliamentary speech, Cotar questioned the need for a Central Bank Digital Currency (CBDC), citing financial and privacy risks. She argued that the push for a digital Euro comes primarily from the ECB and a small group of legislators, rather than from a broader public consensus. Cotar expressed doubts about the ECB’s privacy assurances, suggesting they are unreliable.

Meanwhile, Bitcoin traders are also closely monitoring U.S. Federal Reserve speeches and policies, as the market has largely adjusted to the impact of repayments from the defunct crypto exchange Mt. Gox. Nobuaki Kobayashi, trustee for the Mt. Gox bankruptcy estate, announced on Friday that repayments in Bitcoin and Bitcoin Cash have begun for some creditors through designated crypto exchanges.