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The German government resumed selling its Bitcoin holdings on July 12. This move followed the return of some previously transferred Bitcoins to the government’s Bitcoin wallet. According to blockchain data analysis platform Arkham, the German government conducted multiple transactions, transferring a total of 3,200 Bitcoins to various platforms.
New Steps by the German Government
The transfers, each consisting of 400 Bitcoins, were sent to Bitstamp, Kraken, and Coinbase. Additionally, 1,000 Bitcoins were transferred to an address believed to belong to the B2C2 Group, and 500 Bitcoins to an unmarked bc1qu3…guzr4j address. Meanwhile, crypto analyst Michael van de Poppe shared a post on X predicting that the remaining Bitcoins, worth approximately $300 million, would likely be sold on July 12.
Historically, large sales by government institutions can lead to increased market volatility. However, the careful distribution of Bitcoin across different platforms may help prevent sudden and excessive price volatility. The German government’s wallet, which includes Bitcoins seized from a film piracy website in January, has transferred billions of dollars worth of Bitcoin since June 19, but increased efforts at the beginning of July.
What’s Happening on the Bitcoin Front?
Starting with 50,000 Bitcoins, the wallet sold a significant portion of its assets last month. With 5,800 Bitcoins remaining, the German government has sold 44,200 out of 50,000 Bitcoins, or 88.4%. According to Arkham, on July 11, the German government’s Bitcoin wallet temporarily dropped below 5,000 Bitcoins after transferring approximately $615 million worth of Bitcoin to various crypto exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders, and two unknown addresses.
German lawmaker and Bitcoin advocate Joana Cotar expressed disapproval of the country’s large-scale Bitcoin sale, suggesting that the cryptocurrency could instead be adopted as a strategic reserve currency to hedge against risks in the traditional financial system.
The recent drop in Bitcoin prices can be attributed to a combination of factors, including Germany’s significant Bitcoin sale and concerns over Mt. Gox creditors receiving over $8 billion worth of Bitcoin.
