The German government has finally emptied its Bitcoin (BTC) wallet. On-chain data reveals that a series of transactions on July 12 concluded the government’s sell-offs.
This decision has sparked discussion within the crypto community, highlighting speculation about the future impact on the market.
German Government Bitcoin Sale Concludes, Market Awaits Long-Term Impact
Arkham Intelligence data indicates that the German government began its sales spree yesterday by sending 2,700 BTC to major exchanges such as Kraken, Bitstamp, and Coinbase. Additionally, it utilized other institutional deposit services for these transactions.
Read more: Who Owns the Most Bitcoin in 2024?
Following this, they received back 4,169 BTC, suggesting initial attempts to manage the sell-off’s impact. 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’s complete divestment slightly increased Bitcoin’s price from $57,232 to $57,896. At the time of writing, Bitcoin is trading at $57,811.
The crypto community expressed relief at this development, while some members predicted that the government might “deeply regret” its decision. However, Michaël van de Poppe, founder of crypto consultant firm MN Trading, explained to BeInCrypto that the sell-off was likely due to political and legal obligations.
The state of Saxony seized 50,000 BTC earlier this year, and liquidating seized assets during criminal investigations is standard procedure. Van de Poppe emphasized that economic or market conditions did not influence this move.
“Seized assets are almost always being liquidated within a certain period of time, and that’s just routine business,” he said.
BeInCrypto reported that the German government’s sales spree began on June 19, with significant daily sales impacting the market. Initially, Bitcoin was trading around $65,000, but it has remained below $60,000 since the intensified sales.
Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know
Despite the short-term liquidity shock, experts believe long-term bullish factors will eventually drive significant growth once the market absorbs these selling sprees. Van de Poppe noted that the market had absorbed approximately $3.5 billion in sell pressure over the past weeks. Thus, he believes that the market will stabilize and that Bitcoin’s price will rebound regardless of the fear and negative sentiment among retail traders.
“We’re in the middle of an altcoin bear market in a Bitcoin bull market, which is quite unusual. The Ethereum exchange-traded fund (ETF) is around the corner, while the expectations are super low, through which we can conclude that the event isn’t priced at all. As a matter of fact, the Bitcoin ETF wasn’t priced in as the significant inflow accelerated the price of Bitcoin towards a new all-time high. Through that, I believe that the rotation of price movements on Bitcoin is around the corner, but that the focus is shifting towards the other ecosystems outside of Bitcoin,” he elaborated.
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