On Friday, July 5, Bitcoin fell short-term and lost $54,000. The German government recently transferred over $0.175 billion worth of Bitcoin to multiple cryptocurrency exchanges including Coinbase, Kraken and Bitstamp, and the national sell-off is considered a key reason for the market decline. German Federal Parliament member Joana Cota called on the government to stop selling, believing that this move will have a long-term negative impact on the cryptocurrency market.
(Source: FX168)
German Federal Parliament member Joana Cotar strongly condemned the government's recent decision to sell large amounts of Bitcoin. She believes that this move is counterproductive and compares it to the US perspective on Bitcoin strategy. She pointed out that in the United States, Bitcoin is considered a strategic reserve currency, while the German government's selling behavior appears shortsighted.
(Source: CryptoSlate)
She expressed her concerns to Saxony Minister Michael Kretschmer, Finance Minister Christian Lindner, and Finance Minister Olaf Scholz, and urged them to reconsider this strategy. It is understood that Germany's Bitcoin sale this time was due to an investigation into the illegal movie streaming website Movie2k.to, during which about 50,000 Bitcoins were seized. These Bitcoins are currently worth more than $3 billion.
She emphasized the counterproductive nature of this approach and invited officials to attend the lecture event entitled "National Bitcoin Strategy" to be held on October 17th. This event will invite JAN3 CEO and well-known Bitcoin strategist Samson Mow to attend.
The discussion will focus on how political decision makers can use Bitcoin to promote national economic development. Markets expect Mow to delve into the potential benefits of using Bitcoin as part of a national financial strategy, a topic that is increasingly being scrutinized worldwide.
This event will also discuss the issuance of government bonds supported by Bitcoin to attract a new class of investors interested in fixed income securities denominated in Bitcoin. Mow stated that these bonds could provide a stable source of funding for critical infrastructure projects, stimulating economic growth and innovation.
This event is hailed as a groundbreaking move, as El Salvador adopted Bitcoin as legal tender in 2021, highlighting the potential of such initiatives to drive economic transformation. Mow has previously provided advice to governments such as El Salvador and Mexico, adding credibility to his recommendations.
According to Arkham Data, a data tracking agency, the German government has transferred 1,300 Bitcoins, worth about $76 million, to exchanges including Kraken, Bitstamp, and Coinbase in the past two days. They also transferred 1,700 Bitcoins, worth about $99 million, to other addresses. These funds may be transferred to institutional services or OTC trading deposits. Currently, the German government is still holding 40,359 Bitcoins in marked addresses, with a total value of approximately $2.3 billion.
Bitcoin has fallen by more than 18% in the past 30 days, and its daily trading volume has dropped by 32% over the same period. However, multiple indicators suggest that Bitcoin will experience a deeper correction, so it is unlikely to recover quickly from these losses in the next few days.
The continued downward trend of Bitcoin prices is in line with the prediction of 10x Research experts, who believe that this may be the bottom price of Bitcoin. They warned that this sharp decline may only be the beginning, and Bitcoin may fall further to $50,000.
Breaking through the psychological barrier of $60,000 to $50,000 marks a significant shift in market sentiment, which 10x Research attributes to the depletion of buying flows and the acceleration of selling flows. 10x Research analyst Markus Thielen believes that this downward trend was foreseeable.
He said: "Our data in early June suggested that the market had entered an overbought state and needed to adjust."
Thielen previously shared the following chart, predicting that Bitcoin will break through the consolidation range and fall to $50,000, potentially forming a double top pattern.
(Source: Twitter)
The double top pattern refers to the price reaching two similar peaks, falling slightly in the middle, and maintaining support above a common line called the "neckline." When prices fall below the neckline, this pattern usually disappears, and the drop may be equal to the distance between the peak and the neckline.
"As we've seen over the past three months, range trading is a complicated phase usually marked by several false breakouts," Thielen wrote.
"Historically, top patterns tend to leave retail investors at a disadvantage and many altcoins will experience steep declines."