Key Points
- The German government continues to liquidate its Bitcoin holdings, recently moving 1,125 BTC to three crypto exchanges.
- Should the current rate of selling persist, the German government may exhaust its Bitcoin wallet by month’s end.
The German government is persisting in its selling spree of Bitcoin holdings, despite a significant sell-off on July 10. The most recent data from Arkham Intelligence reveals that the government has transferred a total of 1,125 BTC to three crypto exchanges – Bitstamp, Kraken, and Coinbase.
The government had previously sold over 10,000 Bitcoins on Wednesday. With the latest round of selling, the total holdings have further decreased to 13,177 BTC, now valued at approximately $767 million. In less than a month, the German government has sold nearly 37,000 Bitcoins from its holdings that it had in mid-June. If the selling continues at this pace, the government’s Bitcoin wallet may be emptied by the end of the month.
Transfers and Speculations
In addition to the transactions with the exchanges, the German government has also transferred 1,000 BTC to the suspected B2C2 Group. They also moved 250 BTC to an unidentified address. This has prompted curiosity and speculation within the cryptocurrency community about the government’s strategic management of its crypto assets.
Over the last two days, there has been a significant shuffle in the Bitcoin wallets of the German government. After transferring over 10,800 Bitcoins on Wednesday, the wallets received a total of 2,442 Bitcoins, valued at $141 million, back late last night.
According to Arkham data, a wallet received 903 Bitcoins (worth $52.3 million) from the crypto exchange Kraken. It also recorded inflows of 1,529 Bitcoins (worth $88.6 million) from currently unidentified addresses. The German government also received ten Bitcoins (worth $575,000) from Bitstamp.
While the reason for the return of the BTC to the wallet remains unclear, The Block’s Research Director Steven Zheng offered a potential explanation, stating that they were unsold Bitcoin as part of a sale agreement between the crypto exchange and the country.
Joana Cotar, a member of the German Bundestag and a Bitcoin advocate, has criticized the government’s decision to hastily sell its Bitcoin holdings. She called for the implementation of a comprehensive Bitcoin strategy, labeling the current approach “counterproductive”.
Interestingly, the massive Bitcoin sell-off over the last two days has not significantly impacted the BTC price, which continues to hold steady above the $58,000 level.
