Bitcoin hits 5-month low, Mt. Gox begins repayments, Circle secures MiCA license | Weekly Recap

As a seasoned crypto investor with a decade-long experience in the industry, I’ve witnessed my fair share of market fluctuations and regulatory challenges. Today’s news has once again reminded me of the volatile nature of this asset class. The Bitcoin (BTC) price drop to a five-month low was due to several factors, but the German government’s distribution campaign was a significant contributor.

As an analyst, I’d rephrase the weekly recap as follows:

German government’s distribution campaign 

    The market crash was due to multiple factors bordering on selling pressure. Data from Lookonchain revealed that the German government had continued to distribute part of the 50,000 BTC seized from the defunct piracy platform Movie2k.

Starting from June 19th, the German and US governments, along with MtGox, have collectively moved a sum of 17,788 Bitcoin (equivalent to approximately $1.08 billion). The German Government has been transferring Bitcoin daily since July 1st. Currently, they possess around 396,210 Bitcoin (or roughly $22.78 billion) in their possession.

— Lookonchain (@lookonchain) July 5, 2024

    The government has moved Bitcoin daily since July 1, sending out 7,070 BTC tokens last week, a trend that compounded pressure on the market. The German government now holds 39,826 BTC during this press. 
    On July 4, Tron founder Justin Sun disclosed his willingness to purchase the German government’s BTC off the market to reduce the selling impact. Also, German legislator and Bitcoin advocate Joana Cotar charged the government to stop the BTC sales.
    Meanwhile, the U.S. government, which holds a larger amount of Bitcoin, distributed some of its holdings last week, amounting to 274 Bitcoins. 

Read More

2024-07-07 16:41