Markets
Experts weigh in on Germany’s Bitcoin sell-off
According to on-chain data from blockchain analytics platform Arkham Intelligence, the German government continued its massive Bitcoin (BTC) selloff on July 8.
The government has just sent 2,738.7 BTC, equivalent to US$155.3 million, to markets and exchanges such as Kraken, Cumberland and the address ‘bc1qu’.
Market reactions to Bitcoin liquidations in Germany
Notably, the German government sent 1,533 BTC, or $87.6 million, in the past few hours. Prior to this, the German government had no previous interaction with the Cumberland or bc1qu addresses.
Within hours of the initial transaction, the German government sent an additional 8,100 BTC, valued at $463.2 million, to exchanges and market makers, including $200 million to Flow Traders. Shortly after this second batch, another 5,200 BTC, or $297.3 million, was sent for Kraken, Bitstamp, Coinbase and 139Po.
Read more: Who owns the most Bitcoin in 2024?
German Government Transfers Bitcoin to Exchanges and Market Makers. Source: Arkham Intelligence
This resulted in the largest single day of liquidations, involving almost 16,000 BTC transferred in total. Less than half of what was originally seized from Movie2kThe government’s current Bitcoin holdings are 23,787.7 BTC, valued at $1.35 billion.
Interestingly, Arkham’s data shows that German authorities received nearly 3,000 BTC back later in the day, mostly from Coinbase, Kraken, and Bitstamp. The German government recent BTC liquidations generated discussions among industry experts.
Ki Young Ju, founder and CEO of CryptoQuant, shared his thoughts on the situation. He commented that the Bitcoin market remains heavily influenced by “psyops.”
“Government sales of BTC are insignificant compared to overall liquidity, and most Mt. Gox BTC Holdings were not passed on to creditors. [Crypto Twitter] still blames the decline in government sales. Smart money is replacing dumb money. We are still in the early stages,” he he wrote on your X (Twitter).
Renowned crypto trader Alex Krüger provided a detailed analysis of the liquidations. He pointed out that this was the final stretch of the German liquidation and that they would eventually run out of coins. Furthermore, he suggested that the market could absorb the remainder all at once, just as it did with the Mt. Gox inflows.
Daan Crypto echoed these sentiments. He stated that the reduction in the German government’s Bitcoin balance is partly due to the price drop and the shrinking stack. He believes the impact should slowly diminish over time.
BeInCrypto reported that last weekend, the German government I sent another 700 BTCworth $40.47 million to the address ‘139PoP’. The German government’s ongoing liquidations have undeniably shaken up the market, reflected in Bitcoin’s price performance since the sell-off began.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
When the German government started transfers on June 19Bitcoin was trading around the $65,000 level. At press time, it is trading at $56,586, marking a drop of almost 13%.
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