Bitrabo Editorial
The US and German governments are considering selling a significant amount of their Bitcoin holdings, posing a potential risk of further downward pressure on the cryptocurrency market, as indicated by on-chain data.
US Government Transfers $240 Million Worth of Bitcoin to Coinbase Prime
According to insights from Arkham Intelligence, the US government sent 3,940 BTC ($240 million) to Coinbase Prime, sparking concerns that these crypto assets might be sold, adding more selling pressure on Bitcoin. This BTC was part of the seizure from narcotics trafficker Banmeet Singh, known for selling drugs through the Silk Road dark web marketplace.
In the past, the US government has sold off some Silk Road BTC, impacting Bitcoin’s price significantly. Their last confirmed sale was in March when they offloaded 9,861 BTC ($216 million). The recent transfer to Coinbase suggests that the latest batch of BTC has not been sold yet.
On the other hand, the German government has also made moves to transfer BTC to various exchanges. Arkham Intelligence data reveals that Germany sent 125 BTC ($7.71 million) each to Kraken and Bitstamp, following previous transfers of 400 BTC ($24 million) to Kraken and Coinbase. Additionally, they moved 1,000 BTC to an unknown address (139Po), potentially another exchange.
With Bitcoin already under significant selling pressure, these potential sales from the US and German governments add to the concerns in the market. BTC miners have reportedly sold 30,000 BTC ($2 billion) this month, contributing to the cryptocurrency’s recent decline.
El Salvador Continues to Accumulate Bitcoin
While some governments are looking to sell their Bitcoin holdings, El Salvador has taken a different approach by accumulating more of the cryptocurrency. El Salvador adopted Bitcoin as a legal tender in September 2021 and initiated a ‘1 Bitcoin a day program’ in November 2022, purchasing 1 BTC daily.
Data from Arkham Intelligence shows that El Salvador has maintained this accumulation policy and currently holds 5,794 BTC ($351.82 million). The country has been increasing its holdings through foreign investments and domestic mining operations. El Salvador also plans to establish a Bitcoin bank to attract foreign investors with seamless Bitcoin investment opportunities.