German government’s Bitcoin sale sends BTC price lower after MicroStrategy almost triggers rally

Source Fxstreet
Jun 20, 2024 21:05
  • 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.
  • German government's sale of more than 2,000 BTC may have caused 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 sale of 2,000 BTC may have sent the top digital asset's price back to the $64,000 level.

MicroStrategy increase holdings, German government sells 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.

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

MicroStrategy Bitcoin purchase image

Apart from MicroStrategy, other whales participated in the recent Bitcoin buying spree following its declining price. Data from Lookonchain revealed 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 FUD from sustained selling activity by the German government. In the later hours of Wednesday, the government sold 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. 

Another report from Arkham suggests that the government is still selling BTC, with $65 million worth of Bitcoin sold in the past few hours. This brings its total sales to $195 million in under 24 hours. 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.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Prioritize filling the $27,000 gap and even try higher.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Bitcoin Hasn’t Reached Bull Cycle Top Yet, Quant Explains WhyAccording to the trend in an on-chain indicator, an analyst has explained how Bitcoin may still need to reach the top of the current bull cycle.
Author  NewsBTC
According to the trend in an on-chain indicator, an analyst has explained how Bitcoin may still need to reach the top of the current bull cycle.
placeholder
Spot Ethereum ETFs To Launch In 8 Days, Bloomberg Expert ConfirmsAfter months of anticipation, the launch of spot Ethereum ETFs in the United States appears to be imminent as the US Securities and Exchange Commission (SEC) has reportedly requested that Ethereum ETF issuers submit their final S-1 filings, including fee structures, by Wednesday, July 17.  Ethereum ETFs Hopefuls Gear Up For July 23 Debut Bloomberg […]
Author  Bitcoinist
After months of anticipation, the launch of spot Ethereum ETFs in the United States appears to be imminent as the US Securities and Exchange Commission (SEC) has reportedly requested that Ethereum ETF issuers submit their final S-1 filings, including fee structures, by Wednesday, July 17.  Ethereum ETFs Hopefuls Gear Up For July 23 Debut Bloomberg […]
goTop
quote