Governments in Germany and the U.S. transferred more than $100 million in cryptocurrency. Analysts worry this may lead to a drop in bitcoin prices.Â
This week, Germany shifted $95 million (1,500 BTC) to various crypto exchanges. On the same day, the U.S. moved $11.75 million (3,375 ETH) to an unknown address, reported Arkham Intelligence.Â
Large sales could pressure the market, potentially causing bitcoin prices to fall. Similar events in the past have led to significant price drops.Â
Last month, a German transfer of 195 BTC caused a 3.5% decrease in bitcoin’s price. Germany continues to move funds from its $2.82 billion bitcoin reserve to exchanges like Bitstamp, Coinbase, and Kraken.Â
Currently holding 44,692 BTC, Germany seems to be liquidating its crypto assets. “Investors are cautious about potential market impacts,” said Vijay Pravin, CEO of BitsCrunch. He warned of increased selling pressure and volatility if large-scale sales occur.Â
Over the weekend, the new MiCA (Markets in Crypto Assets) rules took effect in Europe, affecting stablecoins. Many crypto exchanges have delisted euro-denominated stablecoins to comply with these regulations.
