Bitcoins ShortTerm Volatility German Lawmaker Calls for Government Action Analysts Confirm Double Top Fear Break Below 50K

CoinDesk Report:
On Friday, July 5th, Bitcoin experienced a sharp short-term decline, falling below $54,000. The German government recently transferred over $175 million worth of Bitcoin to multiple cryptocurrency exchanges, including Coinbase, Kraken, and Bitstamp, which is seen as a significant factor contributing to the market downturn. German Federal Parliament member Joana Cotar urged the government to halt these sales, citing potential long-term destabilization of the cryptocurrency market.


Joana Cotar, a member of the German Federal Parliament, strongly criticized the recent decision to sell large quantities of Bitcoin. She argued that this move is counterproductive and contrasted it with the strategic perspective on Bitcoin held by the United States, where Bitcoin is considered a strategic reserve asset, highlighting the short-sightedness of Germany’s actions.


She expressed her concerns to Saxony’s Minister President Michael Kretschmer, Finance Minister Christian Lindner, and Finance Minister Olaf Scholz, urging them to reconsider this strategy. The sale of Bitcoin by Germany stems from an investigation into the illegal streaming website Movie2k.to, which resulted in the seizure of approximately 50,000 Bitcoins, now valued at over $3 billion.
She emphasized the detrimental nature of this approach and invited officials to attend the “National Bitcoin Strategy” lecture scheduled for October 17th. The event will feature JAN3 CEO and prominent Bitcoin strategist Samson Mow, focusing on how political decision-makers can utilize Bitcoin to stimulate national economies. Mow is expected to discuss the potential benefits of integrating Bitcoin into national financial strategies, a topic gaining global attention.
The event will also explore issuing government bonds supported by Bitcoin to attract a new class of investors interested in fixed-income securities denominated in Bitcoin. Mow suggested that these bonds could provide stable funding for critical infrastructure projects, stimulating economic growth and innovation.
This initiative draws parallels with El Salvador’s groundbreaking move in 2021 to adopt Bitcoin as legal tender, highlighting the transformative potential of similar measures in driving economic shifts. Mow’s advisory role for governments including El Salvador and Mexico lends credibility to his recommendations.
According to blockchain analytics firm Arkham Data, the German government has transferred 1,300 BTC (approximately $76 million) to exchanges like Kraken, Bitstamp, and Coinbase in the past two days. An additional 1,700 BTC (about $99 million) was moved to other addresses, possibly for institutional service or over-the-counter trading deposits. Currently, the German government holds 40,359 BTC, valued at around $2.3 billion, in marked addresses.
Bitcoin has seen an over 18% decline in the past 30 days, with daily trading volumes dropping by 32% during the same period. However, multiple indicators suggest a potential deeper correction for Bitcoin, making quick recovery from these losses unlikely in the coming days.
The sustained downward trend in Bitcoin aligns with forecasts from 10x Research experts, who speculate this could be the lower limit for Bitcoin prices. They caution that this significant decline may be just the beginning, with Bitcoin potentially falling further to $50,000.
The breach from $60,000 to $50,000 marks a significant shift in market sentiment, attributed by 10x Research to dwindling buying pressure and accelerating selling. Analyst Markus Thielen of 10x Research anticipates this downward trend was foreseeable.
“We signaled market overbought conditions in early June,” Thielen stated.
Thielen previously shared charts predicting Bitcoin’s break from consolidation ranges towards $50,000 and the potential formation of a double-top pattern.


A double-top pattern refers to two similar price peaks, with a slight decline in between, maintaining support above a common line called the “neckline”. When the price breaks below this neckline, this pattern typically dissolves, with the drop potentially equaling the distance between the peaks and the neckline.
“As observed over the past three months, range trading is a complex phase often marked by several false breakouts,” Thielen wrote.
“Historically, top formations often leave retail investors vulnerable, with many altcoins experiencing significant declines.”