Dell next to buy Bitcoin? | Bitcoin News by CoinCorner

Transcript

This week, Dell's founder and CEO continues to drive speculation and tease the internet that he may have a Bitcoin position. We're seeing Bolivia completely change its stance on crypto, and we'll be following the aftermath of the US presidential debate.

Bitcoin's price has continued to sell off to such an extent that we're now not far from hitting a 4-month low. Despite this week's price action, our first story might suggest there could be more selling on the horizon, as the German government has moved around $94 million worth of Bitcoin to exchanges.

Data provided by Arkham shows that the German government moved a total of 1,500 Bitcoin to a few addresses this week. They moved 900 Bitcoin to an unknown address, while moving 200 Bitcoin to an address at Bitstamp, 100 Bitcoin to an address at Coinbase, and 100 Bitcoin to an address at Kraken. This is coming shortly after they carried out a similar set of transactions last week, sending 500 Bitcoin to the same unknown address, 200 to Coinbase, and a further 200 to Kraken.

But it's not just the German government; it appears the US is at it too, as we've seen them move around $1.75 million worth of Ether to an unknown address. Now, it's not uncommon for these governments to sell off their digital assets, as a lot of their holdings come from seizing funds tied to illegal activity. It's reported that the US government alone has sold off over 195,000 Bitcoin since 2014, earning them over $366 million.

Now, it's worth noting that both of these governments still have enormous holdings, with the US possessing over 213,000 Bitcoin and Germany holding 43,000. But as with any market, large selling events like this could cause the price action to weaken if there isn't enough buying demand.

One company that isn't selling is the world's largest Bitcoin miner, Marathon, who didn't sell any Bitcoin last month. In June, Marathon held 18,536 Bitcoin worth over $1.1 billion, according to the firm's operations report published on the 3rd of July. In a statement from Marathon, the company still intends to sell a portion of its Bitcoin holdings in future periods to support monthly operations, manage its treasury, and for general corporate purposes.

Bitcoin halving cycles can have a knock-on effect on the profitability of miners due to the reduced block reward, and it's not uncommon for miners to be forced to switch off their underperforming hardware or sell coins to pay for operational costs. If miners do opt to sell off large holdings, this can contribute to a decline in Bitcoin's trading price.

Our next story is coming from Dell Technologies' founder and CEO, Michael Dell, who has filed to sell as much as 10 million shares of his stock in the company, worth roughly $1.3 billion in cash. As we reported last week, Dell has already cashed out approximately $2.1 billion worth of Dell stock recently, and many are speculating that he may have ploughed as much as $450 to $475 million into Bitcoin on the 30th of June. Analysts are saying that this big-ticket purchase underpinned a rally in the price of Bitcoin, which rose by about 5% on Monday following the transaction made on the Binance exchange.

Now, the reason Dell is causing such speculation about a potential Bitcoin position is mainly due to his recent string of posts on X. It all started when he posted, "Scarcity creates value," and then he followed this up by retweeting Michael Saylor's response, "Bitcoin is digital scarcity." Then last week, he posted a poll questioning his followers on "What is the most important thing?" with Bitcoin coming out on top. And then, on the 1st of July, he posted, "Do is greater than say," which drew a response from Coin Corner CEO Danny Scott, who said, "Everything pointing to a Bitcoin buy."

Now, changing gears, last week we saw the US presidential candidates go head-to-head in their first TV debate on CNN, and to the Bitcoin community's surprise, Bitcoin and crypto went completely unmentioned. This came as such a surprise as three crypto-backed Super Political Action Committees (PACs) have raised around $200 million from large industry backers and have been spending $93.6 million to influence the 2024 elections.

Trump, particularly, has recently come out with a very positive stance on crypto and Bitcoin, and if elected, has vowed to end Biden's so-called "war on crypto." He's also said that he wants Bitcoin to be "made in America" following meetings with Bitcoin miners and other industry experts. But what seemed to steal the focus of the entire debate was the perceived mental capabilities of both candidates, who currently are the oldest candidates ever to run for office.

Now, our final story is coming from Bolivia, a country which up until now has had a ban on Bitcoin and crypto in place since 2014. Bolivia's central bank has lifted its ban on Bitcoin and crypto payments, allowing financial entities to conduct transactions with digital assets in a bid to modernise its payment system. The move was made to help Bolivia elevate its struggling economy and align with Latin American crypto regulations. They are potentially following in the footsteps of El Salvador, Argentina, Mexico, and Brazil, who have all had a proactive approach to the adoption of Bitcoin and other digital assets. However, unlike El Salvador, in Bolivia, Bitcoin and other crypto assets will not be recognised as legal tender.