Government Cryptocurrency Dealings

Posted By Darren Winters on Jul 4, 2024

Government Cryptocurrency Dealings

The recent government cryptocurrency dealings in July could shed some light on where the 2.3 Trillion US dollar crypto market is heading next.

There is a relative period of calm with the crypto Greed and Fear Index, a risk indicator, hovering around 49, or neutral, at the time of writing this piece.

Is this the calm before the storm, or is the two trillion-dollar crypto market about to take a moonshot? 

Two recent government dealings, Germany and the US, the latter in ETH and the former in BTC could be worth zeroing in on German government cryptocurrency dealings in BTC 

According to data from the on-chain analytics platform Arkham Intelligence, the German government transferred 2,700 BTC to multiple exchanges over the last two weeks.

More recently, on July 1, the German government moved 1,500 BTC worth roughly $95 million to multiple crypto exchanges.

The exchanges include Bitstamp, Coinbase and Kraken. The German government currently holds 44,692 BTC worth approximately $2.82 billion.

In its latest transfers, 400 of the 1,500 BTC transferred were sent to the aforementioned major crypto exchanges, while 750 BTC was transferred on June 26, 250 of that to Bitstamp and Kraken.

US government cryptocurrency dealings in ETH

Government Cryptocurrency Dealings

The US government also moved 3,375 ETH worth $11.75 million to an unknown address.

According to Arkham intelligence data, the U.S. government has made large transactions, specifically the address holding funds seized from Estonian crypto entrepreneurs Sergei Potapenko and Ivan Turogin.

Previously moving 11.84 BTC worth around $743,000 on June 30 from another seized funds address, the US government has since moved its entire $11.75 million in ETH holdings to a previously unassociated address.

The recent government cryptocurrency; what do they mean for investors? 

The frequent and recent transfers suggest strategic management of the held funds, with Germany potentially looking to liquidate its holdings on prominent exchanges. The Markets in Crypto-Assets Regulation (MiCA) recently adopted by the European Union could have influenced Germany’s recent crypto transfers. MiCA could shake up the crypto market substantially.

Meanwhile, the US government’s movement of funds to an unknown wallet could suggest a general shift in ETH fund management.

Government cryptocurrency dealings come when BTC has seen historical seasonal strength. 

Bitcoin price historically averaged a slump of 0.35% in June, according to data from Coinglass. 

In previous years, whenever June ended in a downtrend, the following month saw a strong comeback, with Bitcoin gaining an average of 7.42% historically, according to the data.

Overall, BTC has posted minimum monthly gains of 8% for seven of the last 11 July trading periods.

Bitcoin had posted minimum gains of 28% in the first few weeks of every July for the last six consecutive years. 

Despite headwinds, Bitcoin had been trading strongly in a low to mid $60,000 range. 

The key support level is at $57,000 in the coming weeks as Mt. Gox creditor repayments hit the market

So, recent government cryptocurrency dealings during BTC’s historic best month in November, with an average monthly gain of 46.81% since 2013, are intriguing.

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