German Government's Bitcoin Sell-Offs
German government's massive Bitcoin sell-off of 16,000 BTC causes a nearly 13% drop in prices, stirring expert debates on market impacts.
The German government recently sold over 16,000 BTC in a single day, causing significant discussions about its effects on the Bitcoin market. On-chain data from Arkham Intelligence shows the sell-offs continued heavily on July 8.
On July 8, the German government transferred 2,738.7 BTC, worth $155.3 million, to various exchanges including Kraken and Cumberland. They sent an additional 1,533 BTC ($87.6 million) soon after, marking their first interaction with Cumberland and 'bc1qu' addresses. Later, 8,100 BTC ($463.2 million) went to market makers like Flow Traders, followed by another 5,200 BTC ($297.3 million) to Kraken, Bitstamp, Coinbase, and '139Po.'
The government's Bitcoin holdings, originally from the Movie2k seizure, now stand at 23,787.7 BTC worth $1.35 billion. Interestingly, they received nearly 3,000 BTC back from Coinbase, Kraken, and Bitstamp later the same day.
These large sell-offs have triggered varied reactions from experts. Ki Young Ju, CEO of CryptoQuant, noted that the Bitcoin market is heavily influenced by psychological factors. He suggested that the impact of government BTC sales is small compared to the market's overall liquidity, noting that most Mt. Gox BTC holdings haven't moved to creditors yet.
Crypto trader Alex Krüger believes the German government's sell-offs are nearing their end, and the market can absorb the remaining coins. Daan Crypto agreed, saying the impact should diminish as the BTC supply decreases.
BeInCrypto reported another transaction involving 700 BTC ($40.47 million) sent to the '139PoP' address recently.
In conclusion, the German government’s Bitcoin sell-offs have significantly impacted the market. Prices have fallen, and experts are divided on the long-term effects. However, as the government's BTC supply dwindles, the influence of these sell-offs might lessen.
