(1/2) The German government turned to over-the-counter selling, the wallet was cleared for the first time, and the market panic came to an end.
ETFs continued to net inflows, the Bitcoin trend was mild, and it was not appropriate to be overly bearish. The hot copycat opportunity is here!
1. The German government wallet was cleared for the first time
1. The German government holds 49,859 Bitcoins, which were illegally held by the operator of the movie piracy website Movie2k.to in 2013.
2. On June 18, 2024, the German government began to sell these Bitcoins. By July 8, 2024, in the first 20 days of the sale, among them:
* 9,983 Bitcoins were directly deposited into the centralized exchange (CEX), and 7,106 Bitcoins were returned from the CEX, and only 2,877 Bitcoins were sold.
* 19,521.7 Bitcoins were transferred to the wallet and sold through over-the-counter (OTC).
Bitcoin's current daily trading volume is about $30-40 billion, and the German government's selling accounts for a small proportion. This is just a one-time event and will not affect Bitcoin's overall bullish trend.
However, the German government chose to sell directly to CEX in the first 20 days. The frequent reports of its on-chain actions had a psychological impact on traders, and market makers may also take hedging based on news reports to push prices, causing Bitcoin to fall below the key support range of 66,000-65,000, resulting in market panic and further plunges.
Most of the Bitcoin transferred to CEX was returned, which may have made the German government realize that selling through CEX is not a good idea, prompting it to turn more Bitcoin to OTC sales. Usually, selling through OTC can avoid causing panic and creating a negative market impression.
3. After July 9, 2024, as the German government turned to OTC sales, Bitcoin's trend was mild, and it continued to rebound and walked out of the upward channel. As of today (July 13, 2024), after 25 days of intensive selling, the German government wallet's holdings have fallen to zero for the first time.
