The German and US governments are selling Bitcoin while El Salvador is holding on

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Bitcoin (BTC) and the broader cryptocurrency market are at risk: further downward trend due to a recent event regarding US and German governmentsOn-chain data suggests that both governments intend to dispose of a significant portion of their BTC holdings.

The US government sent $240 million in Bitcoin to Coinbase Prime

On-chain analytics platform Arkham Intelligence revealed on X (formerly Twitter) post That United States Government sent 3,940 BTC ($240 million) to Coinbase Prime. This has raised concerns that the government may want to get rid of these crypto tokens, which would put more sales pressure on the flagship cryptocurrency.

Arkham also revealed that this BTC was part of a seizure made by a drug dealer. Banmeet Singh following a trial that took place earlier this year. Interestingly, Singh is known to have sold drugs through the Silk Road marketplace, a obscure web platform from which the US government seized a significant amount of Bitcoin.

source: Etherscan

The US government has in the past offloaded part of Silk Road’s BTC, which also led to significant selling pressure for the flagship cryptocurrency. The last confirmed sale occurred in March, when they offloaded 9,861 BTC ($216 million). They have not yet confirmed the sale of the 3,940 BTC transferred to Coinbase, which suggests that they have not yet been sold.

Meanwhile, the U.S. government is not the only one wanting to abandon the market. Data from Arkham Intelligence shows that German government recently transferred 125 BTC ($7.71 million) each to cryptocurrency exchanges Kraken and Bitstamp. This followed their recent transfer of 400 BTC ($24 million) to Kraken and Coinbase. Meanwhile, the German government also transferred 1,000 BTC to an unknown address (139Po), which may be another cryptocurrency exchange.

The potential sale of Bitcoin by the US and German governments is more concerning given that Bitcoin is already facing enormous selling pressure. Bitcoinist recently reported that BTC miners have sold 30,000 BTC ($2 billion) this month alone, which has contributed significantly to the massive decline in the cryptocurrency’s value since the beginning of the month.

Another government decides to stay

While the United States and governments continue to divest their Bitcoin holdings, another government, Savior, instead opted to continue accumulating its flagship cryptocurrency. El Salvador is known to have adopted Bitcoin as legal tender from September 2021 and initiated the “1 Bitcoin per day” program in November 2022, where they buy 1 BTC every day.

Data from Arkham Intelligence shows that he is sticking to this policy and currently holds 5,794 BTC ($351.82 million). El Salvador also continued to accumulate through foreign investment Mining activities. Bitcoinist recently reported government plans to set up a Bitcoin bank to lure foreign investors with hassle-free Bitcoin investments.

Bitcoin price chart from Tradingview.com
BTC price exceeds $61,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

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