In June 2024, the US government and the German government moved Bitcoin out of their wallet addresses. Most of this Bitcoin is transferred to exchanges and the rest is transferred to a number of other anonymous wallets.
On June 26, 2024, the US government transferred 3940 BTC to the Coinbase Prime hot wallet address. This is an OTC trading floor and when moving to such an OTC trading floor, a large proportion of this quantity of goods has had a previously agreed trading price and does not affect the normal value at all.
The German government on June 26 and July 1 transferred a total of 745BTC to Coinbase, Kraken and Bitstamp exchanges. If the German government sells this amount of Bitcoin, how will it affect the price of Bitcoin?
Let's analyze market data as of July 1, 2024:
_ The German government divides the amount of Bitcoin it wants to sell to many exchanges and each exchange does not exceed 200 BTC
_ 2% market depth on July 1, 2024 of the entire market is 6.08k BTC, on the exchanges that the German Government transfers to are Coinbase 698, Kraken 937, Bitstamp 294 respectively.
Looking at the above data, we can see that if the German Government sold all the goods they loaded onto the trading floors on June 26 and July 1, it would likely only reduce prices by less than 2%, a very small margin compared to with Bitcoin's one-day fluctuations.
In general, the selling force from Governments at the present time is not too large, but the market will need time to absorb this amount of sales, so Bitcoin price may continue to move sideways in the next few months.
