According to on-chain data from blockchain analytics platform Arkham Intelligence, the German government has continued its massive Bitcoin (BTC) sell-offs on July 8.
The government just sent 2,738.7 BTC, equivalent to $155.3 million, to markets and exchanges like Kraken, Cumberland, and address ‘bc1qu.’
Market Reactions to German Bitcoin Sell-Offs
Notably, the German government sent 1,533 BTC, or $87.6 million, within the past hours. Before this, the German government had no previous interaction with the Cumberland or bc1qu addresses.
A few hours after the initial transaction, the German government sent an additional 8,100 BTC, valued at $463.2 million, to exchanges and market makers, including $200 million to Flow Traders. Shortly after this second batch, another 5,200 BTC, or $297.3 million, was sent to Kraken, Bitstamp, Coinbase, and 139Po.
Read more: Who Owns the Most Bitcoin in 2024?
The German Government Bitcoin Transfers to Exchanges and Market Makers. Source: Arkham Intelligence
This resulted in the biggest single day of sell-offs, involving almost 16,000 BTC transferred overall. Less than half of what was originally seized from Movie2k, the government’s current Bitcoin holdings stand at 23,787.7 BTC, valued at $1.35 billion.
Interestingly, Arkham’s data shows that the German authorities received nearly 3,000 BTC back later in the day, primarily from Coinbase, Kraken, and Bitstamp. The German government’s recent BTC sell-offs have sparked discussions among industry experts.
Ki Young Ju, founder and CEO of CryptoQuant, shared his thoughts on the situation. He commented that the Bitcoin market remains heavily influenced by “psyops.”
“Government BTC selling is negligible compared to overall liquidity, and most Mt. Gox BTC holdings haven’t moved to creditors. [Crypto Twitter] still blames the drop on government selling. Smart money is replacing dumb money. We’re still early,” he wrote on his X (Twitter).
Renowned crypto trader Alex Krüger provided a detailed analysis of the sell-offs. He pointed out that this was the final stretch of the German sell-off, and they would eventually run out of coins. Furthermore, he suggested that the market could absorb the rest in one scoop, just as it could with Mt. Gox flows.
Daan Crypto echoed these sentiments. He stated that the German government’s Bitcoin balance reduction is partially due to price decreases and the shrinking stack. He believes that the impact should slowly diminish over time.
BeInCrypto reported that last weekend, the German government sent another 700 BTC, worth $40.47 million, to the ‘139PoP’ address. The German government’s continuous sell-offs have undeniably stirred the market, reflected in Bitcoin’s price performance since the sales spree began.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
When the German government initiated the transfers on June 19, Bitcoin was trading around the $65,000 level. As of now, it is trading at $56,586, marking a nearly 13% decrease.
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