The German government has recently moved nearly $1 billion worth of the flagship cryptocurrency Bitcoin (BTC) from its cryptocurrency wallet in a single day, sending shockwaves in the space as analysts feared a massive sell-off.
According to data from on-chain analytics firm Arkham Intelligence, the German government moved 16,000 BTC worth around $915 million to various addresses, most of which were tagged as belonging to cryptocurrency trading platforms and market makers.
The firm detailed the initial transactions in a tweet, stating that the German government sent 2,738.7 BTC worth over $155 million to exchanges and market makers including Kraken, Cumberland, and a wallet identified by its initials “139Po.”
This is not the first time the German government has interacted with the wallet it recently moved 500 BTC to, “139Po,” as Arkham Intelligence data reveals previous transfers of 800 BTC on June 20 and 500 BTC on June 19 to the same address. The address was associated with being a deposit for an institutional or over-the-counter trading service.
TODAY: German Government selling up to $155M BTCToday the German Government sent 2738.7 BTC ($155.3M) to likely exchanges/market makers including Kraken, Cumberland, 139Po (likely deposit for institutional/OTC service) and address bc1qu.Of this, 1533 BTC ($87.6M) has been… pic.twitter.com/NcvqK6HKVZ
— Arkham (@ArkhamIntel) July 8, 2024
In subsequent updates, Arkham reported additional significant transfers, with the German government sending BTC to major exchanges that also included Bitstamp and Coinbase, as well as market maker Flow Traders. These transactions brought the total daily movement to over 16,000 BTC, the largest single-day transfer by the German government to date.
The German government’s Bitcoin stash was originally of nearly 50,000 BTC, seized from the operators of a film piracy platform, Movie2k.to, which was last active over a decade ago. The government currently holds roughly 22,846 BTC, valued at approximately $1.32 billion.
Some analysts have suggested that Bitcoin 3% rise over the last 24-hour period, which came even amid the German government selling nearly $1 billion worth of the cryptocurrency, is a bullish signal that the market is recovered as demand is growing.
Notably a Bitfinex report has suggested that “a potential local bottom has been reached.” The report noted the market is now realizing that while the German government is selling large amounts of BTC, these funds are a “relatively small number” as a proportion of all the BTC bought and sold since last year.
The firm also noted that volatility metrics are showing signs of stabilization. The narrowing spread between implied volatility and historical volatility suggests that the market anticipates a period of greater stability going forward. This implies that Bitcoin’s price may range around its current levels or experience less dramatic declines, the firm said.
Featured image via Unsplash.