On Thursday, July 11, the German government intensified its unprecedented sell-off of Bitcoin (BTC), disposing of an additional 1125 BTC through prominent exchanges such as Coinbase, Kraken, and Bitstamp. This move comes amidst a series of strategic sales aimed at liquidating part of its substantial Bitcoin holdings, initially seized from a movie piracy website.
German Government’s Latest Bitcoin Dump
According to Arkham Intelligence data, the German government offloaded 375 BTC, valued at approximately $21.77 million, each to Coinbase, Kraken, and Bitstamp. Simultaneously, it transferred another 1250 BTC to various addresses. This move suggests that further Bitcoin selloff could be initiated via these addresses.
Notably, a substantial portion of these transfers included 1000 BTC, equivalent to a staggering $58.05 million, had been shifted to the suspected B2C2 Group address, 139PoP…H7ybVu. This address has been observed frequently receiving transfers from the German government. It mostly acts as an intermediary as it redistributes funds to other wallets.
In parallel, an additional 250 BTC, valued at approximately $14.51 million, was shifted to another address. This also raises concerns of an impending liquidation on the German government‘s part. These transactions have profoundly impacted Germany’s Bitcoin reserves. The government’s reserve now holds 13,177 BTC with an estimated market value of $765.94 million.
This marks a substantial decline from the reported 50,000 BTC holdings as of June 18, 2024. Moreover, earlier, on July 10, the government offloaded over 10,600 Bitcoin to exchanges and other addresses. This gigantic dump took away the German government’s “Bitcoin Billionaire” status. However, the BTC price showed resilience and remained stable at $57,000.
On July 10, the German government’s Bitcoin wallet transferred a whopping 8,853 BTC within just an hour. Notably, 1,250 BTC were sent to crypto exchanges, including Kraken and Coinbase. Additionally, the government allocated 536.108 BTC to Cumberland DRW.
Moreover, the wallet shifted 4,127.281 BTC to Flow Traders, and 2,000 BTC to an address apparently associated with the B2C2 Group. Further, an on-chain transfer of 690 BTC was detected to an unlisted address, bc1qu3…guzr4j, which was also involved in today’s transactions.
Also Read: German Bitcoin Sales Impact Wanes, What’s Next?
Impact On BTC Price
Moreover, July 10 marked one of the most extensive single-day operations by the German government to reduce its Bitcoin holdings. Over the past 20 days alone, approximately 37,000 Bitcoins have been liquidated from the government’s reserves since mid-June.
These substantial sell-offs exerted notable downward pressure on Bitcoin price. Earlier this week, BTC hit a four-month low on Monday, July 8, dropping below $54,000. However, the impact of the German government’s selloff has waned as Bitcoin remained steady despite the 10,600 BTC dumped.
Bitcoin bulls are expected to have taken charge as the market sentiment remained unchanged despite the recent offloading. The latest US employment data has swung market sentiment, with many commentators predicting upcoming interest rate reductions.
Moreover, analysts are suggesting two Federal Reserve interest rate cuts this year. The first cut is anticipated as soon as September, sparking a surge in market optimism. Lower interest rates are expected to encourage investment in riskier assets. Additionally, the influx of institutional investments into Spot Bitcoin ETFs and upcoming Ethereum ETFs are poised to further boost market recovery.
Also Read: Breaking: Germany’s Bitcoin Holdings Drop to 15,100 In Recent Sell-Off
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