Crypto News- Germany Transfers 750 BTC, Draining Altcoin Liquidity

Crypto News- German BTC Move of 750 Coins Siphons Altcoin Liquidity

Crypto News- Bitcoin experienced a brief surge above $62,000 during the early Asian session but quickly retreated to $61,400. This price drop came amid significant on-chain activity involving the German government’s BTC holdings. Blockchain analyst Lookonchain reported that Germany, the eurozone’s largest economy, transferred 750 BTC—valued at over $46 million—with 250 BTC sent to crypto exchanges Bitstamp and Kraken, possibly indicating preparations to sell these tokens. This move, part of a divestment of BTC seized from a privacy website, added bearish pressure to the market. Notably, the German government holds over 45,000 BTC.

Following Bitcoin’s lead, Ether’s price also dropped from $3,425 to $3,375. The CoinDesk 20 Index (CD20) similarly retreated, losing about 0.14%.

In recent times, alternative cryptocurrencies have faced a more significant liquidity drain compared to Bitcoin and Ether. For instance, the notional open interest—or the dollar value locked in active futures contracts—tied to altcoins has decreased by 34% to $12 billion since Bitcoin peaked above $70,000 on June 7, according to Coinalyze. In contrast, the cumulative open interest in Bitcoin and Ether futures fell by only 13% to $29.3 billion.

This one-way flow quickly turns reflexive to the downside and exacerbates underperformance relative to majors. Bid-side liquidity is less incentivized, and traders hesitate to catch a falling knife. Throw in fewer market makers and a huge increase in coin issuance and you’ve got a very sloppy altcoin market, wrote Jeff Dorman, the chief investment officer at Arca, in his weekly note.

The Cardano blockchain demonstrated its resilience on Tuesday by successfully repelling a DDoS attack aimed at stealing staked tokens. The network remained operational with no disruptions. Philip Disarro, founder of Cardano development firm Anastasia, explained that the attack was stopped by deregistering the attacker’s stake credentials. Following this, Cardano’s ADA token remained stable before slightly dipping to below 39 cents, aligning with broader market trends.

trending crypto chart today

• The chart shows that the meme coin Doraemon (DORAE) experienced a boom-bust pattern early Wednesday, rising to over $2 million in market value only to crash to less than $200,000 in 30 minutes.
• Lookonchain said someone sold 2.5 million DORAE for 10,538 SOL, causing the price crash.
• Source: Dexscreener

– Omkar Godbole

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