The German government is still actively selling Bitcoin, but the recent exchange withdrawals have made the whole incident even more intriguing. Let’s take a closer look at the specifics:

1. Current status of the German government’s sales: They are selling BTC almost every day. According to rough statistics, they have successfully sold 37,112 BTC since June 19. Currently, there are about 22,846K BTC left in their address.

2. Reasons for exchange withdrawals: Steven Zheng, head of research at The Block, analyzed that the reason why exchanges returned Bitcoin was probably because they could not successfully sell it within the preset price range. Today, the German government address received two withdrawals:

(1) At 4:15 am, 2,898 Bitcoins from Coinbase, Kraken and Bitstamp were withdrawn, worth about US$163 million.

(2) The Bitstamp address transferred a total of 1,692 BTC to the wallet address of the “German government” three times.

3. Views on the German coin selling incident: Although some people believe that the amount of coins sold by Germany is not large, and the withdrawal of coins reflects its internal chaos, they call on everyone not to panic. But the reality is that as long as the German government continues to sell BTC, it will put pressure on the rise of BTC.

Although many people believe that the second retracement of BTC may trigger a rise, any upward trend may be easily broken when the German government still has more than 20,000 BTC. Therefore, we should remain cautiously optimistic about the short-term rebound.

4. Countermeasures: In the current market environment, whether it is the German government's coin selling behavior or the compensation of Mentougou, the main impact is BTC. ETH is relatively independent and is doubly benefited by ETF expectations and whales' bottom-fishing. Therefore, for investors, if you are not sure what to buy, ETH may be a relatively safe choice.