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Main reason why Bitcoin (BTC) is collapsing despite the stock surge
Alex Dovbnja
Is the selling spree initiated by the German government responsible for Bitcoin’s underperformance?
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The price of Bitcoin, the largest cryptocurrency by market capitalization, is Losing ground despite the strength of the US stock market.
According to data from CoinGecko, the flagship cryptocurrency slipped to an intraday low of $64,544 after reaching a peak of $66,436.
The recent decline could be related to Bitcoin sales madness initiated by the German government. According to data provided by the analysis platform Arkham Intelligence, the German government sent $65 million to two probable exchange depositories, including Coinbase. In particular, Ki Young Ju, founder and CEO of on-chain analytics platform CryptoQuant, noticed this selling pressure it is the primary source from the Coinbase exchange.
This comes after the German government sent $130 million worth of Bitcoin to various exchanges that included Kraken and Bitstamp. It continues to hold a whopping $3.05 billion worth of Bitcoin.
German authorities are known to have seized a whopping 50,000 Bitcoins from Movie2k.to, the now-defunct piracy site, in 2013.
Nvidia continues to grow
Meanwhile, the benchmark S&P 500 index briefly topped 5,500 for the first time today before paring some gains.
The US stock market is supported by the remarkable surge of the technology giant Nvidia. After becoming the most valuable public company in the world, Nvidia’s market capitalization now stands at a staggering $3.4 trillion. This makes it larger than the French GDP and the entire cryptocurrency sector.
Most traders believe that the US Federal Reserve will cut rates before November. This could give some hope to the battered cryptocurrency market as looser monetary policy would benefit cryptocurrencies.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.