Bitcoin, the largest cryptocurrency by market capitalization, has experienced a decline despite the strength of the U.S. stock market. The leading cryptocurrency fell to an intraday low of $64,544 after reaching a peak of $66,436, according to CoinGecko data.
This decline follows actions by the German government. Data from Arkham Intelligence reveals that the German government transferred $65 million worth of Bitcoin to potential exchange deposits, including Coinbase. Ki Young Ju, the founder and CEO of on-chain analytics platform CryptoQuant, noted that a significant amount of Bitcoin came from Coinbase.
Additionally, the German government previously sent $130 million worth of Bitcoin to various exchanges, including Kraken and Bitstamp, and still holds approximately $3.05 billion worth of Bitcoin. The German authorities are known for seizing 50,000 Bitcoins from the now-defunct piracy site Movie2k.to in 2013.
Nvidia’s Continued Rise
Meanwhile, the benchmark S&P 500 index briefly surpassed the 5,500 level for the first time ever earlier today before retracting some gains. The U.S. stock market is buoyed by the remarkable rise of tech giant Nvidia. Having become the most valuable public company in the world, Nvidia’s market cap now stands at $3.4 trillion, making it larger than France’s GDP and the entire cryptocurrency industry.
Read more Whale Makes $395 Million Bitcoin Purchase Amidst Market Turbulence
Most traders believe that the U.S. Federal Reserve will cut interest rates before November. This potential easing of monetary policy could provide a glimmer of hope for the beleaguered cryptocurrency market, as more accommodative financial conditions typically benefit cryptocurrencies.
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