Germany has lost its Bitcoin billionaire status after its most recent Bitcoin transfers to centralized exchanges and external wallets. According to Arkham Intelligence, the German government’s address now has less than 10,000 BTC worth $580 million.
Also Read: Bitcoin is primed for a breakout in spite of selling pressure
Over the past 48 hours, the German authorities have transferred more than 10,000 BTC in what appears to be a race to sell off all its holdings. However, the market seems to be adjusting to the sales as it did not affect the BTC price, which rose by 2% in the last 24 hours.
Germany moves over 15,000 BTC
Recent transactions from an address labeled German government (BKA) show that it moved around 4,000 BTC worth around $236 million on July 11 alone. This follows its transfer of 10,853 BTC, worth around $626 million, on July 10.
These funds went to various entities, including centralized exchanges, crypto market makers, and over-the-counter (OTC) traders. Per Arkham data, the recipients of the BTC include Coinbase, Kraken, and Bitstamp exchanges. Some were also sent to addresses linked to digital assets firms and market makers such as UK-based B2C2, Cumberland DRW, and Flow Traders.
Germany Bitcoin Holdings (Source: Arkham)
Despite the massive sell-offs and transfers over the last two days, BTC looks to be on the path to recovery. According to CoinMarketCap, its price increased 2% in the previous 24 hours, reaching $59,387. These gains are likely due to the better-than-expected news that the consumer price index (CPI) only increased by 3%, a sign that inflation is coming down and rates could go down too.
The selling spree might not be over
Meanwhile, the Bitcoin sale has attracted criticism from multiple fronts, including within the country. Joana Cotar, a member of the German Bundestag, has criticized the sale. She described it as counterproductive and said the government should hold it as a strategic reserve currency instead.
Also Read: Germany’s movement of over $400 million in Bitcoin sparks sell-off concerns
Many in the crypto community share this view, with some describing the sale as evidence that politicians are not wise. Others note that the government is selling scarce resources for money that can be printed “out of thin air.”
Nevertheless, these criticisms are unlikely to prevent the government from selling all of the Bitcoin. Besides, it is possible that they are being directed at the wrong authorities. According to reports, Saxony, one of the states in eastern Germany, confiscated the Bitcoin in January.
Samir Tabar, the CEO of Bit Digital, said:
“Germany selling bitcoin is fake news. It’s not Germany that’s been selling, but a tiny German state called Saxony. The state confiscated almost 50,000 BTC and has been selling its holdings as per standard practice for any assets seized during criminal investigations.”
However, some experts believe that the current price struggles for BTC are not necessarily due to the German government’s sell-offs. Dr. Jan Wustenfeld, the lead researcher at Melanion GreenTech, noted that available data shows that sales are not responsible for this because BTC price drawdowns are more evident during US and Asian trading hours than European trading hours.