The German government has started moving millions in Bitcoin to crypto exchanges and other wallets, preparing for another large selloff. On Tuesday, they transferred 3,100 BTC to Kraken and other unknown wallets.
Since early June, Germany’s federal investigative police have sold hundreds of millions in Bitcoin, with the pace of sales increasing in July, which has caused some panic in the crypto market.
German Government Executes Massive Bitcoin Selloff
On July 9, blockchain data from Arkham Intelligence revealed that Germany’s Federal Criminal Police Office (BKA) transferred 400 BTC to the crypto exchange Kraken. Additionally, the BKA moved 2,500 BTC to a B2C2 Group-linked wallet address (139PoP) and 200 BTC to another address (bc1qu3). This large selloff amounted to Bitcoin worth $177.54 million within an hour.
This massive selloff followed Bitcoin transfers into the German government wallet from the crypto exchange Bitstamp, sparking concerns about the government’s selling strategy. Despite these movements, the government wallet still holds Bitcoin valued at $1.48 billion.
On Monday, the German government moved over 5,000 BTC to several crypto exchanges, including Coinbase, Bitstamp, and Kraken, as well as to other wallet addresses. After this large sale, the government bought back 3,673 BTC.
German Government Bitcoin Selloff Spurs Outrage, BTC Shows Resilience
The German government’s recent Bitcoin selloff has sparked outrage within the crypto community, leading to a nearly 10% drop in Bitcoin’s price, which fell to $53,000. Joana Cotar, a German Parliament member, has urged the government to halt the ongoing selloff and retain Bitcoin as a reserve asset.
Despite this selloff, Bitcoin’s price has shown resilience, trading over 2% higher at $57,672. It recently hit a 24-hour high of $58,131, driven by reduced Mt. Gox repayment fears and increased expectations of Federal Reserve rate cuts in September.
Data from the derivatives market indicates strong buying interest, with Bitcoin futures open interest across exchanges rising by 2.60% in the past 24 hours. Significant buying activity has been recorded on CME and Kraken, suggesting heightened demand in the US.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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