The members of the crypto ecosystem are reacting to the selloff of Bitcoin (BTC) by Germany in an unusual way. In less than 24 hours after the Saxony government emptied its last tranche of Bitcoin on Trader Flows and 139Pon, the wallet as tracked by Arkham Intelligence has started donations in BTC.
The Reasons Behind the Unsolicited Bitcoin Donation
The supporters of crypto have a mind that is arguably contagious. Thus far, the wallet address of the German government holds more than $16 worth of Bitcoin. The funds came from a couple of donors with the largest BTC sent thus far coming in at $8.12.
Just-in: More people donating #Bitcoin to the broken #German government. pic.twitter.com/K82ACDj5Ir
— Carl ₿ MENGER ⚡️🇸🇻 (@CarlBMenger) July 13, 2024
While the total amount is small compared to what it held about a month ago, there are underlying messages with these unrequested donations. One major reason is that this is a vote of no confidence on the government’s actions. Selling the seized Bitcoin worth 50,000 units came to many as a ill-advised move.
One of the critic of these selloff is Joana Cotar, a lawmaker in the country who noted that the government could have HODLed the coins instead. Now, top proponent Samson Mow is proposing a Bitcoin buyback very soon.
Another potential reason behind the donations is to express displeasure with the government regarding the impact of the weeks-long selloff. During this period, BTC price suffered suppression, dropping from a high of $67,294.65 to a low of $53,717.38. Over the past month, Bitcoin suffered intense liquidation that lost many money.
Lastly, the donations to Germany might be to prove what the coin, even as little as the donated sum, can amount to in the long term. With many experts predicting that the price of BTC can soar above $100,000, many believe the government would have benefitted more if it HODLed.
Headwinds Still Lie Ahead
Germany might have completed its selloff of Bitcoin, the coin is not free from mainstream government selloffs.
The US Government has also been sending Bitcoin units to centralized exchanges like Coinbase. With thousands of BTC units still left in its wallet, Bitcoin might still face similar drawdowns in the near future.
The distribution of up to $9 billion in Bitcoin and Bitcoin Cash (BCH) by Mt.Gox in the coming months is also a bearish event to watch. With these events, the price of BTC might wave some more in the this quarter.
Read More: Ethereum News: Whale Scoops $33M ETH As Spot ETF Approval Speculation Looms
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