The German government sold 50,000 BTC over three weeks, keeping Bitcoin’s price below $60,000.
The final 3,846 BTC transaction to Flow Traders and 139Po marked the end of Germany’s Bitcoin holdings.
Market experts remain optimistic about Bitcoin’s rebound despite the ongoing Mt. Gox repayment plan pressure.
The German government has completely divested its Bitcoin reserves, sending the last of its holdings, 3,846.05 BTC, valued at $223.81 million, to Flow Traders and 139Po, likely institutional deposit/OTC service platforms.
As of July 12, the government holds zero BTC, according to Arkham Intelligence data. This action follows several weeks of intensified selling, which has exerted considerable downward pressure on Bitcoin’s price, keeping it below the $60,000 mark.
BREAKING: The German Government is now out of Bitcoin.The German Government just sent 3846.05 BTC ($223.81M) to Flow Traders and 139Po (likely institutional deposit/OTC service).The German Government has 0 BTC ($0.00M) remaining. pic.twitter.com/R2vfylR1b2
— Arkham (@ArkhamIntel) July 12, 2024
Final Transaction and Market Impact
The final transaction marks the peak of a large-scale liquidation effort by the German government. Over the past three weeks, the government sold approximately 50,000 BTC, influencing the market. The selling spree has been speculatively linked to Bitcoin’s struggle to break the $60,000 threshold and its 200-day exponential moving average.
The offloaded Bitcoin originated from a 2013 seizure of nearly 50,000 BTC from the operators of Movie2k.to, a film piracy website. The liquidation strategy, particularly the largest single-day sale of $900 million worth of BTC on a recent Monday, aimed to deplete the seized assets but resulted in adverse effects on Bitcoin’s market value.
Seized Assets and Strategic Sales
In January, Germany seized these assets, valued at around $2.8 billion in June. The aggressive liquidation approach, while depleting the reserves, has kept selling pressure high, affecting market sentiment and prices.
These transfers have coincided with notable inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), which absorbed approximately $801 million in BTC over four trading sessions.
Market Reactions and Future Outlook
Despite the conclusion of Germany’s Bitcoin sell-off, market pressures persists due to the $9 billion Mt. Gox repayment plan. This ongoing situation may continue to suppress Bitcoin prices in the short term, sustaining the climate of fear, uncertainty, and doubt within the market.
However, optimism remains among market experts who believe Bitcoin could rebound. Positive recent inflation data and the end of the German sell-off provide a more stable outlook. Additionally, the anticipated launch of Ethereum ETFs might revive interest in the ETF market, offering healthy competition for Bitcoin ETFs and potentially aiding BTC’s recovery.
While the sell-off has applied considerable pressure on Bitcoin prices, the market may find stability and potential growth with the end of this selling phase and the introduction of new financial products like Ethereum ETFs.
Read also
German Government Continues Bitcoin Selloff Amid Market Tensions
German Government Prepares to Offload Bitcoin Worth $342M, Will BTC Print a New Bottom?
German Government Surprises Market with 1,915 Bitcoin Buyback, Fuels Crypto Recovery
Mt Gox Anticipated Selloffs and German Dumping Fuel BTC Crash
German Government Dumps Over $100 Million Worth of Bitcoin
The post German Government Empties Bitcoin (BTC) Reserve, Crypto Market Flips Green appeared first on Crypto News Land.
