German government’s Bitcoin transfer sends BTC price lower after MicroStrategy almost triggers rally
- MicroStrategy acquired 11,931 more BTC after raising $800 million from convertible note offering.
- MicroStrategy's move propelled Bitcoin's price back to $66,000 before it experienced a correction.
- The German government's transfer of more than 2,000 BTC, some of them to exchanges, may have caused the correction.
MicroStrategy acquired an additional 11,931 BTC on Thursday, bringing its entire holdings to 226,331 BTC. Following this move, Bitcoin's price rebounded to $66,000, but FUD from the German government's transfer of 2,000 BTC may have sent the top digital asset's price back to the $64,000 level.
MicroStrategy increase holdings, German government moves BTC
MicroStrategy has acquired more Bitcoin with proceeds from its convertible note sales, which closed on June 17. The company announced that it completed the sale of its convertible note offerings, raising about $800 million. The notes bear an interest rate of 2.25% per annum and will be payable beginning December 15, 2024.
Also read: Bitcoin price continues to plummet as whale activities deepen
With the sale, MicroStrategy purchased 11,931 additional Bitcoin for $786 million. This pushes its holdings to 226,331 BTC, approximately $15 billion at Bitcoin's current price, according to Ecoinometrics.
MicroStrategy's move may also have contributed to propelling Bitcoin's price to $66,000 briefly before it experienced a slight correction.
MicroStrategy Bitcoin purchase image
Apart from MicroStrategy, other whales participated in the recent Bitcoin buying spree following its declining price. Data from Lookonchain showed that an anonymous whale bought 6,070 BTC worth $395 million in the recent market drop. The report suggests that this "smart" whale buys BTC at particularly low market prices and sells at price highs.
Meanwhile, Bitcoin's return to the $64,000 level in the past few hours may have been triggered by movements from wallets related to the German Government. In the later hours of Wednesday, these wallets moved around 2,000 BTC out of the 49,857 BTC confiscated from a pirated movie website. Blockchain analytics platform Arkham noted that the government transferred 1,100 BTC ($72.9m) to five centralized exchanges, including Coinbase, Kraken and Bitstamp.
Depositing tokens from wallets to exchanges generally indicates a willingness to sell in the near future. This may have particularly contributed to the recent decline in Bitcoin's price.
Such institutional moves from governments or top companies usually trigger volatility in the crypto market.
For example, earlier in May, a failed crypto exchange, Mt. Gox, was rumored to have initiated a repayment process of $9.62 billion worth of Bitcoin to early creditors who had invested in the company before it crashed in 2014. The exchange later clarified that the repayment had yet to begin. However, the rumor sparked FUD, which sent Bitcoin into consolidation for several weeks.
(This story was corrected on June 21 at 06:23 GMT to say that blockchain data suggests wallet addresses related to the German government transferred Bitcoin to another wallet and some other amount to exchanges, not sold the holdings.)
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
