Experts Weigh In On Germany’s Bitcoin Liquidity

According to chain data from the blockchain analytics platform Arkham Intelligence, the German government continued its massive Bitcoin (BTC) sales on July 8.

The government sent 2,738.7 BTC equivalent to $155.3 million to markets and exchanges like Kraken, Cumberland and address ‘bc1qu'.

Market Reaction to German Bitcoin Sales

Specifically, the German government has sent 1,533 BTC or $87.6 million in the past hours. Previously, the German government had no contact with Cumberland or bc1qu addresses.

A few hours after the first transaction, the German government sent an additional 8,100 BTC worth $463.2 million to exchange and market makers, including $200 million to flow traders. Shortly after this second group, another 5,200 BTC or $297.3 million was sent to Kraken, Bitstamp, Coinbase and 139Po.

Read more: Who will have the most Bitcoins in 2024?

This resulted in a total of approximately 16,000 BTC of forwarded sales offers. The government's current bitcoin holdings are 23,787.7 BTC, worth $1.35 billion, less than half of what it originally held from Movie2k.

Interestingly, Arkham's data shows that German authorities have recovered nearly 3,000 BTC later in the day, mainly from Coinbase, Kraken and Bitstamp. The German government's recent sale of BTC has sparked discussion among industry experts.

Ki Young Joo, founder and CEO of CryptoQuant, shared his thoughts on the situation. He opined that the Bitcoin market will be heavily influenced by “psyops”.

“Government BTC sales are insignificant compared to the total volume of funds, and the majority of Gox BTC holdings have not been transferred to creditors. [Crypto Twitter] He still blames the slowdown on government sales. Smart money replaces dumb money. It's Christmas,” he wrote on X (Twitter).

Well-known crypto trader Alex Kruger provided a detailed analysis of the selloff. This is the final stage of the German sale and indicates that the coins will finally run out. Furthermore, he pointed out that the market could absorb the remainder in one scoop, just like Gox's flow.

Daan Crypto echoed these sentiments. The German government has attributed the decrease in Bitcoin balance in part to a dwindling price and shrinking stack. He believes that the effect should gradually decrease over time.

BeenCrypto reports that last weekend the German government sent 700 BTC worth $40.47 million to the ‘139PoP' address. The German government's ongoing selloff has stirred the market, which has been reflected in Bitcoin's price performance since the selloff began.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

When the German government started the transfers on June 19, Bitcoin was trading at the $65,000 level. As of now, it's trading at $56,586, down nearly 13%.