With just 5,800 Bitcoin remaining, the German government has sold 88.4% of its original 50,000 BTC. On July 12, the government resumed selling its Bitcoin holdings, following the return of some previously transferred BTC to its wallet.
According to Arkham blockchain data, the government carried out several transactions, moving a total of 3,200 Bitcoin, worth $57,140, across various platforms.
German Government’s Bitcoin Sales and Market Impact
The German government has sent transfers to Bitstamp, Kraken, and Coinbase, with each exchange receiving 400 BTC. Additionally, 1,000 BTC and 500 BTC were sent to two unknown addresses.
Crypto analyst Michaël van de Poppe speculated on X that the remaining Bitcoin, worth approximately $300 million, will likely be sold on July 12. Historically, large sales by government entities can increase market volatility. However, the strategic distribution of Bitcoin across different platforms may help mitigate sudden and extreme price swings.
Source: Michael van de Poppe
The German government’s wallet, which contains Bitcoin seized from a film pirating website in January, has transferred billions of dollars in Bitcoin since June 19, with intensified selling efforts beginning in early July.
Starting with 50,000 Bitcoin, the German government has sold a significant portion of its holdings over the past month. With just 5,800 Bitcoin remaining, the government has sold 44,200 BTC, which is 88.4% of its original amount.
On July 11, the government’s Bitcoin wallet briefly dropped below 5,000 BTC after transferring approximately $615 million worth of Bitcoin to various cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders, and two unknown addresses, according to blockchain analytics firm Arkham.
German lawmaker and Bitcoin advocate Joana Cotar has criticized the country’s large-scale Bitcoin sale, arguing that the cryptocurrency could have been used as a “strategic reserve currency” to protect against risks in the traditional financial system.
The recent decline in Bitcoin’s price is attributed to several factors, including the German government’s substantial BTC sale and concerns about Mt. Gox releasing over $8 billion worth of Bitcoin to its creditors, contributing to market uncertainty and downward pressure on prices.
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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