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⚡Germany Sells $2.3 Billion in Bitcoin🇩🇪

Croxroad

14 Jul 2024 — 4 min read

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🔛 Germany's $2.3B Bitcoin Sale

The German government has sold some $2.3 billion worth of Bitcoin since June 19, igniting a 25% drop from its highs. However, Jan Sell, managing director of Coinbase Germany, advises not to panic. In an interview with DL News, Sell emphasised that the government's selling isn’t an anti-crypto move but rather a routine process similar to disposing of impounded assets. Germany’s central criminal investigation agency had seized 50,000 Bitcoin from the Movie2k.to piracy website, and the government has transferred 40,000 of these to various crypto exchanges, including Coinbase. Sell noted that the volume of Bitcoin sold on behalf of the German government is not significant compared to the exchange's usual transactions.

Despite Sell’s reassurances, the selling has certainly shaken investors. The Crypto Fear and Greed Index, a measure of market sentiment, fell to its lowest reading since January 2023. Germany is not the only country with confiscated Bitcoin. The US government holds over $13 billion of seized Bitcoin, while UK authorities hold around $3.6 billion. Historically, governments have sold confiscated crypto at auctions, but larger amounts often need to be sold on the open market, raising concerns about potential market impacts. The worry is that if more governments decide to cash in their confiscated crypto, it could further destabilise the market.

Since the German government started selling its Bitcoin, the top cryptocurrency has struggled to recover, trading below $60,000 since July 4. Sell does not believe the German government's selling is entirely to blame for the drop, hinting at other significant sales happening concurrently. One such event is the distribution of Bitcoin from Mt. Gox, the defunct Japanese crypto exchange hacked in 2014, which is expected to return over 140,000 Bitcoin to victims this month. Many recipients are anticipated to cash out, adding to the market's current volatility.

🪓 MicroStrategy Stock Split

MicroStrategy, renowned for being one of the world's largest holders of bitcoin (BTC), has announced plans for a 10-for-1 stock split, set to take effect in early August. This move will apply to both MicroStrategy's class A and class B shares, with shareholders of record as of August 1 slated to receive nine additional shares for each share owned, distributed after markets close on August 7. The split-adjusted trading of MicroStrategy's shares will commence on August 8.

While the stock split does not alter the total value of investors' holdings, it aims to reduce the price per share, potentially enhancing accessibility and stimulating demand among investors. MicroStrategy's shares have surged over 100% this year, surpassing $1,000 per share, buoyed by the SEC's greenlighting of spot bitcoin ETFs earlier in the year. However, amidst recent fluctuations, with bitcoin trading below $60,000 from its peak above $73,000 in March, the stock split arrives as part of a broader trend seen with other tech giants like Nvidia and Broadcom, both recently announcing similar splits.

Following suit with Nvidia's and Broadcom's decisions to implement 10-for-1 stock splits, MicroStrategy's stock surged over 4% to $1,362.50 following the announcement, underscoring market optimism around these strategic manoeuvres aimed at broadening investor participation and bolstering market liquidity.

🌀 Types of Storage

Cryptocurrency storage can be categorised into custodial and non-custodial options, with four main types of wallets: desktop, mobile, hardware, and web-based. Desktop and mobile wallets are convenient but vulnerable to security breaches. Hardware wallets, like USB devices, offer enhanced security by storing keys offline, while web-based wallets pose risks as they store keys online, making them susceptible to hacking. The distinction between hot wallets (connected to the internet) and cold wallets (offline) determines their vulnerability to cyber threats, highlighting the importance of choosing a wallet that balances convenience with robust security measures for safeguarding cryptocurrency assets.

🤣 Crox Road Memes

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