Coins by Cryptorank
NewsEditorial office

German Government Continues Significant Bitcoin Sell-Off

Jul 9, 2024 at 04:00

The German government has resumed its Bitcoin liquidation, moving approximately 3,100 BTC, valued at $178 million, within just one hour on July 9. This transaction is part of a broader sell-off strategy, with more sales anticipated shortly.

Recent Transactions

Alongside this sell-off, the government also withdrew around 1,700 BTC, worth about $91.78 million, from the Bitstamp exchange, replenishing its Bitcoin reserves. Additionally, another 3,107 BTC has been moved from the government’s main holdings, indicating further imminent sales.

Current Holdings and Transfers

The German government’s primary Bitcoin address holds approximately 26,000 BTC, valued at $1.5 billion. The address used for off-loading currently holds 4,800 BTC, worth $276.61 million. Since 7:30 am UTC on July 9, a total of 3,100 BTC has been offloaded, with 2,500 BTC sent to an unknown B2C2 Group, 400 BTC to the centralized exchange Kraken, and 200 BTC to an unidentified wallet.

Previous Sales and Market Impact

Arkham Intelligence transactional data on the tracked address for the German government. Source: Arkham Intelligence

On July 8, the German government sold an additional $900 million worth of BTC, indicating ongoing plans to liquidate its $1.5 billion Bitcoin holdings. Despite the significant sell-off, the previously sold 16,309 BTC is now valued at over $930 million, suggesting continued buyer confidence at these price levels.

Economic Implications

Wall Street traders predict a 72% chance of the US Federal Reserve cutting interest rates in September, which could boost investment in Bitcoin. Lower interest rates generally have a positive impact on risk-on assets like Bitcoin, contrasting with safe-haven assets like gold.

The brand new newsletter with insights, market analysis and daily opportunities.

Let’s grow together!

Market Sentiment and Indicators

The recent sell-offs by the German government and the reduction in BTC miner activity indicate that market sentiment might be approaching a bottom. Bitfinex analysts noted that market data from July 6 and 7 reflected this local bottom, despite the start of Mt. Gox’s BTC and Bitcoin Cash (BCH) repayments.

Potential for Rebound

Despite the ongoing sell-offs, several indicators suggest that Bitcoin might be poised for a rebound. Bitcoin’s price reached its lowest since late February, hitting $53,550 before rebounding to current levels around $57,600. The relative strength index (RSI) shows a divergence between falling prices and rising RSI values, indicating weakening selling pressure.

All information provided on this website is for educational and informational purposes only. Please consult with our Disclaimer.

Home » News » German Government Continues Significant Bitcoin Sell-Off

Your complaint has been sent to a moderator