The German government resumed selling its Bitcoin holdings on July 12, transferring a total of 3,200 BTC back into its Bitcoin wallet, according to Arkham blockchain data. These transactions spanned across multiple platforms.
Recent transfers
Bitcoin Transfers: Bitstamp, Kraken, and Coinbase Each Receive 400 BTC; Unknown Addresses Get 1,000 BTC and 500 BTC
Crypto analyst Michaël van de Poppe predicts that the German government will sell its remaining Bitcoin holdings, valued at around $300 million, on July 12.
Government Bitcoin Sales Could Impact Market Volatility, Yet Diversified Distribution May Mitigate Price Swings
The German government’s Bitcoin wallet, containing funds seized from a film pirating website in January, has seen substantial transfers since June 19, with increased activity noted at the beginning of July.
Market sell pressure
Starting with 50,000 Bitcoin, the wallet has sold a substantial portion of its holdings in the past month. With 5,800 Bitcoin left, the German government has sold 44,200, which accounts for 88.4% of the original 50,000.
On July 11, the German government’s Bitcoin holdings briefly dropped below 5,000 BTC after transferring approximately $615 million worth of Bitcoin to several cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders, and two undisclosed addresses, according to blockchain analytics firm Arkham.
Joana Cotar, a German lawmaker and Bitcoin advocate, criticized the country’s extensive Bitcoin sales, suggesting that Bitcoin could have been used as a hedge against risks in the traditional financial system by adopting it as a “strategic reserve currency” instead.
The recent decline in Bitcoin’s price is attributed to several factors, including Germany’s substantial BTC sales and concerns over Mt. Gox releasing over $8 billion worth of Bitcoin to its creditors, causing market uncertainty and downward pressure on prices.
