German authorities stepped up their selling of Bitcoin on Monday, causing wild market volatility. Bitcoin (BTC) surged to over $58,000 over the weekend, but continued selling by German authorities has caused its price to fall by more than 2% in the past few hours.
According to data from blockchain analysis platform Arkham, German authorities have transferred large amounts of Bitcoin to multiple exchanges and market makers, including the first transaction involving more than 2,730 BTC (worth about $155 million), followed by an additional 8,100 BTC (worth more than $463 million). In addition, German authorities sent 5,200 BTC worth $297 million to Kraken, Bitstamp and Coinbase. These selling actions have led German authorities to sell more than 16,000 BTC in one day alone on Monday. Arkham data also shows that German authorities' holdings have been reduced to 23,787.7 BTC, worth about $1.32 billion, less than half of the amount of BTC they seized in early January 2024.
Ki Young Ju, founder and CEO of CryptoQuant, pointed out that the German government's BTC sell-off may have overestimated its impact. Although the government has sold $224 billion worth of Bitcoin since 2023, these sales only account for about 4% of its total seized BTC value. Ju further explained that despite the 350% increase in BTC prices, investors' sell-side liquidity remains controllable.
Despite the volatility in the Bitcoin market, a report from asset management company CoinShares showed that Bitcoin digital asset products have seen positive inflows. The report pointed out that Bitcoin digital funds attracted about $400 million in inflows, showing that the overall market interest in digital asset investment products remains strong.
Overall, despite price fluctuations, the market's interest in Bitcoin and its related investment products and the trend of capital inflows remain positive.
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