Since June 19, wallets related to the German government have frequently transferred large amounts of bitcoins to exchanges and market makers such as Coinbase, Kraken, and Bitstamp for sale. This is considered to be another major reason for the recent decline in Bitcoin, in addition to the Mt. Gox exchange's initiation of repayment.
How many Bitcoins are left in Germany?
According to data shared by on-chain analyst Yu Jin last night, after Germany transferred a total of 10,853.5 bitcoins (about 638 million US dollars) yesterday (July 10), its bitcoin holdings fell to 13,110 bitcoins (followed by subsequent returns, Arkham data showed that there were still 15,000 bitcoins).
He said that based on the recent sales frequency, Germany’s Bitcoin will most likely be cleared this week:
Today, Germany transferred a total of 10,853.5 bitcoins to exchanges and market makers (according to the previous on-chain data, some unsold bitcoins may be returned from exchanges in the future, which means that the actual sales quantity should be less than the current transfer quantity).
Since they started selling bitcoins on June 19, they have transferred out a total of 36,748.4 bitcoins (about US$2.157 billion), and they still hold only 13,110 bitcoins (about US$758 million).
Judging from the number of coins sold in recent days, there is a high probability that the remaining bitcoins will be liquidated this week.
In this regard, some netizens said that it seems that the German government’s impact on the market has gradually slowed down, and Bitcoin may have reached bottom.
Bitwise CIO: Bitcoin could reach $100,000 by the end of the year
Against this background, Matt Hougan, CIO of crypto asset management company Bitwise, recently stated that whether it is the repayment of Mt. Gox exchange or the sell-off by the US and German governments, these adverse market factors are temporary. They will only cause a short-term impact on liquidity, and this period will soon end.
In contrast, the continued net inflow of Bitcoin spot ETFs, Bitcoin halving, the upcoming listing of Ethereum spot ETFs, and the expected interest rate cuts by the Federal Reserve will create a good long-term environment for the development of cryptocurrencies. Therefore, Bitcoin is likely to be pushed up to $100,000 by the end of the year, and Ethereum will also set a new historical high.
