The German government has resumed selling its Bitcoin holdings, beginning the process on July 12. This move follows the return of some previously transferred funds 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. The transactions were confirmed at precisely 15:02 UTC+8.
Recent transfers
The Bitcoin distribution had Bitstamp, Kraken, and Coinbase receiving 400 BTC each, totaling 1,200 BTC. Additionally, 1,000 BTC was sent to an address believed to belong to B2C2 Group, specifically address 139PoP…H7ybVu., and 500 BTC was transferred to an unmarked address, identified as bc1qu3…guzr4j.
Meanwhile, crypto analyst Michaël van de Poppe shared a post on the X social platform speculating that the remaining Bitcoin (BTC), worth approximately $300 million, is likely to be sold on July 12.
Historically, large sales by government entities can lead to increased market activity and potential price fluctuations. However, the careful distribution of Bitcoin across different platforms might help prevent sudden and extreme price swings.
The German government’s wallet, holding Bitcoin BTC seized from a film pirating website crackdown in January, has transferred billions in Bitcoin since June 19 but ramped up efforts at the start of July.
Market sell pressure
Beginning with 50,000 Bitcoin, the wallet has transferred away a significant chunk of its holdings over the past month. With 5,800 Bitcoin remaining, the German government has successfully sold 44,200, 88.4% of the original 50,000.
Related: ‘Buy the dip’ mentions on social platforms surge as Bitcoin stumbles
On July 11, the German government’s Bitcoin wallet temporarily fell below 5,000 BTC after transferring approximately $615 million worth of Bitcoin (10,620 BTC) 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.
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