Markets
German government moves $895 million in BTC; crypto executive calls dump “overrated”
Main conclusions
- Germany transferred 16,039 BTC worth $895 million to exchanges and market makers.
- CryptoQuant CEO claims government sales represent just 4% of total value realized since 2023.
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The German government resumed its Bitcoin (BTC) outflow spree today with around 16,039 BTC sent to exchanges and market makers. That amount is equivalent to nearly $895 million. After the move was reported According to on-chain data platform Arkham Intelligence on X, Bitcoin saw a rapid 3.5% drop in minutes before quickly recovering.
According to a panel by Arkham, the German government still holds 23,788 BTC, which translates to over $1.3 billion. government eviction is one of the factors pointed out by investors as putting pressure on the price of Bitcoin, along with the recent rise of Mt. Gox reimbursement of creditors.
Justin Sun, the founder of Tron, even offered to strike a deal with the German government to buy all of its BTC holdings. However, it’s unclear whether this was a real offer or just Sun chasing the spotlight.
Notably, CryptoQuant CEO Ki Young Ju highlighted X says the government dump is “overrated.” He explains that $224 billion has flowed into crypto since 2023, and the government’s seized Bitcoin stash only accounts for $9 billion. “That’s just 4% of the total cumulative value realized since 2023. Don’t let government FUD selling ruin your trading.”
However, Bitcoin’s “overhang supply,” as Mt. Gox and government assets are called, still leaves investors fearing an imminent dump. This puts the market in a tough spot as BTC attempts to reclaim its key price level of $60,600, as underlined by trader Rekt Capital.
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