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German Government’s Bitcoin Sell-Offs Stir Market Reactions

On July 8, the German government continued its significant Bitcoin sell-offs, as shown by on-chain data from Arkham Intelligence. They sent 2,738.7 BTC, worth $155.3 million, to exchanges like Kraken, Cumberland, and address ‘bc1qu’.

German government Bitcoin sell-off affecting the market
Source: Coinbackyard

Market Reactions 

Recently, they transferred 1,533 BTC, equivalent to $87.6 million, to these platforms. The German government had not previously interacted with Cumberland or the bc1qu address. 

A few hours later, an additional 8,100 BTC, valued at $463.2 million, was sent to various exchanges, including $200 million to Flow Traders. This was followed by another 5,200 BTC, worth $297.3 million, to Kraken, Bitstamp, Coinbase, and 139Po. 

This marked the largest single-day sell-off, with nearly 16,000 BTC transferred. The government’s current Bitcoin holdings stand at 23,787.7 BTC, valued at $1.35 billion, less than half of what was originally seized from Movie2k. 

Expert Opinions 

Arkham’s data also revealed that the German authorities received almost 3,000 BTC back later in the day, mainly from Coinbase, Kraken, and Bitstamp. These actions have sparked discussions among industry experts. 

Ki Young Ju, founder and CEO of CryptoQuant, remarked that the Bitcoin market remains heavily influenced by “psyops.” Renowned crypto trader Alex Krüger analyzed the sell-offs, noting this was the final stretch and the market could absorb the remaining coins. He compared it to the Mt. Gox flows. 

Daan Crypto agreed, saying the reduction in the German government’s Bitcoin balance is due to both price decreases and the shrinking stack. He believes the impact will diminish over time. 

BeInCrypto reported that last weekend, the German government sent another 700 BTC, worth $40.47 million, to the ‘139PoP’ address. These continuous sell-offs have undeniably stirred the market, reflected in Bitcoin’s price performance since the sales began. 

Bitcoin Price Performance 

When the German government started the transfers on June 19, Bitcoin was trading around $65,000. As of now, it is trading at $56,586, marking a nearly 13% decrease.

July 9, 2024 at 11:15 am

Updated July 9, 2024 at 11:15 am

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