The German government’s bitcoin wallet dropped to 5,800 BTC after a big selloff
The German government began selling its Bitcoin holdings on July 12. The move follows the return of some previously transferred BTC to the government's Bitcoin wallet.
According to Arkham blockchain data, the German government has made several transactions on various platforms, transferring a total of 3,200 Bitcoin (BTC).
Recent transfers
The transfers received 400 BTC each and were sent to Bitstamp, Kraken and Coinbase. Additionally, 1,000 BTC and 500 BTC were sent to two unknown addresses.
Meanwhile, crypto analyst Michael Van de Pop shared a post on X predicting that $300 million worth of remaining Bitcoin could be sold on July 12.
Historically, large sales by government entities have resulted in increased market volatility. However, the careful division of Bitcoin into different platforms helps prevent sudden and drastic price fluctuations.
A German government wallet holding bitcoins seized from a movie piracy website seized in January has been transferring billions of dollars in bitcoins since June 19, but it ramped up its efforts in early July.
Market selling pressure
Starting with 50,000 bitcoins, the wallet sold a large amount of its holdings last month. With 5,800 Bitcoin remaining, the German government sold 44,200 – 88.4% of the original 50,000.
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In the year On July 11, the German government's Bitcoin wallet dropped below 5,000 BTC after temporarily transferring an estimated $615 million worth of Bitcoin to various cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders and two unknown addresses.
German lawmaker and bitcoin advocate Joanna Kotar has rejected the country's large-scale sale of bitcoin, suggesting the cryptocurrency could have been used instead as a “strategic reserve currency” to protect against risks to the traditional financial system.
The recent decline in Bitcoin prices can be attributed to a combination of factors, Germany's heavy BTC sales and concerns that MT Gox is releasing a large amount of Bitcoin worth more than $8 billion to lenders, adding to the market's uncertainty and downward spiral. Pressure on prices.
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