Markets
German Government’s Bitcoin Wallet Drops to Zero After Massive Liquidation
The German Government Has Finally Dumped Its Bitcoin (BTC) portfolio. On-chain data reveals that a series of transactions on July 12 completed government liquidations.
This decision has sparked discussion in the cryptocurrency community, highlighting speculation about its future impact on the market.
German Government’s Bitcoin Sale Completes, Market Awaits Long-Term Impact
Arkham Intelligence data indicates that the German government has started its sales spree yesterday sending 2,700 BTC to major exchanges like Kraken, Bitstamp and Coinbase. In addition, used other institutional deposit services for these transactions.
Read more: Who owns the most Bitcoin in 2024?
Latest Bitcoin transactions from the German government. Source: Arkham Intelligence
After this, they received back 4,169 BTC, suggesting initial attempts to manage the impact of the liquidation. However, additional transactions included 748.25 BTC to Cumberland and another 2,300 BTC to Kraken and other services.
The final transactions involved sending 3,049 BTC to an institutional deposit service and 752.17 BTC to Flow Traders. The German government completed disinvestment slightly increased the price of Bitcoin from $57,232 to $57,896. At the time of writing, Bitcoin was trading at $57,811.
The crypto community expressed relief at this development, while some members foreseen that the government may “deeply regret” its decision. BeInCrypto reported that the German government’s selling spree began on June 19with significant daily selloffs impacting the market. Initially, Bitcoin was trading around $65,000 but has remained below $60,000 since the selloff intensified.
Read more: How to Buy Bitcoin (BTC) and Everything You Need to Know
Despite the short-term liquidity shock, experts believe that long-term bullish factors will eventually drive significant growth once the market absorbs these waves of selling. Renowned cryptocurrency trader Michaël van de Poppe noted that the market had absorbed approximately $3.5 billion in selling pressure in recent weeks.
“Bitcoin is still at $58,000. Rotation is coming,” he he wrote.
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