The German government has resumed 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 executed multiple transactions, transferring a total of 3,200 Bitcoin (BTC) across various platforms.
Recent transfers
The transfers were sent to Bitstamp, Kraken and Coinbase, which received 400 BTC each. Additionally, 1,000 BTC and 500 BTC were sent to two unknown addresses.
Meanwhile, crypto analyst Michaël van de Poppe shared a post on X speculating that the remaining Bitcoin worth approximately $300 million will likely be sold on July 12.
Historically, large sales by government entities can lead to increased market volatility. However, the careful distribution of Bitcoin across different platforms might help prevent sudden and extreme price swings.
The German government’s wallet, which holds Bitcoin seized from a film pirating website seized in January, has transferred billions of dollars in Bitcoin since June 19 but ramped up efforts at the start of July.
Market sell pressure
Starting with 50,000 Bitcoin, the wallet has sold a significant chunk of its holdings over the past month. With 5,800 Bitcoin remaining, the German government has sold 44,200 — 88.4% of the original 50,000.
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On July 11, the German government’s Bitcoin wallet temporarily fell below 5,000 BTC after transferring approximately $615 million worth of Bitcoin to various cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders and two unknown addresses, according to blockchain analytics firm Arkham.
German lawmaker and Bitcoin advocate Joana Cotar has expressed disapproval over the country’s large-scale sale of Bitcoin, suggesting that the cryptocurrency could have been utilized as a safeguard against traditional financial system risks by adopting it as a “strategic reserve currency” instead.
The recent decline in Bitcoin’s price can be attributed to a combination of factors, including Germany’s significant sale of BTC and concerns that Mt. Gox is releasing a substantial amount of Bitcoin worth over $8 billion to its creditors, which has led to market uncertainty and downward pressure on prices.