Key Points
- The German government has transferred over $94 million worth of Bitcoin to various exchanges.
- The German government’s Bitcoin holdings are estimated at around $2.8 billion.
The German government has continued to sell its Bitcoin holdings, with the latest transfer occurring on Monday, July 1. On-chain data showed that over 1.5K Bitcoins, valued at over $94 million, were sent to different exchanges during the early European session.
This move is part of a wider trend of large-scale Bitcoin sell-offs. Cryptocurrency investment products have seen three consecutive weeks of cash outflows. The level of Bitcoin miners capitulating has hit its lowest level since the FTX collapse. Additionally, the US government has reportedly been selling its seized cryptocurrency holdings.
Germany’s Bitcoin Assets
On-chain data reveals that the German government currently holds approximately 44.692K Bitcoins, worth around $2.8 billion. In the last 24 hours, the Bitcoin address linked to the German government has transferred hundreds of Bitcoins to Bitstamp, Coinbase Global Inc, and Kraken.
The German government has been consistently selling its Bitcoin holdings in recent weeks, with more than 2.7K Bitcoins offloaded in the past two weeks. These Bitcoins were initially acquired in 2013 following a significant seizure from the now-defunct film privacy website, Movie2k.to.
Germany has progressively embraced Web3 and digital assets to strengthen its economy, a move mirrored by other nations. The introduction of clear crypto regulations in many countries has led to a significant decrease in unemployment. Additionally, more global investors are showing interest in the Web3 sector, seeking to tokenize real-world assets (RWA) and expand their market reach.
Market Influence
The ongoing Bitcoin sales by the German government have negatively impacted the bullish sentiment surrounding Bitcoin. The cryptocurrency, which was trading around $70K a few weeks ago, has dropped to around $61K in recent days.
Despite this, Bitcoin’s price is on an upward trajectory, with the six-month candle closing above $62K for the first time in its history. This long-term demand for Bitcoin has allowed it to consolidate in a bullish flag, indicating potential future gains.
Crypto analysts largely believe that Bitcoin is well-positioned to close above $100K this year, driven by institutional investors. US-based spot Bitcoin ETFs have started to accumulate more coins following a period of accelerated sell-offs.
The German government’s decision to hold onto its Bitcoin holdings for over a decade is seen as a bullish signal. Other countries, including the United States and China, also retain a significant portion of their initial Bitcoin holdings.
