On Thursday, July 11, the German government sold an additional $376 million worth of Bitcoin, reducing its total holdings to below 10,000 BTC. Despite the sale, the Bitcoin price has remained steady around $57,000.
Major Offload of Bitcoin Holdings
The German government continued its aggressive selling strategy on Thursday, offloading 10,627 BTC worth $616 million at a price of $57,976 per BTC. According to data from Arkham Intelligence, the government later received back 4,169 BTC valued at approximately $241 million, with an average price of $57,469 per BTC.
Following this recent sale, the German government's Bitcoin holdings now stand at 9,094 BTC, valued at around $520 million. Over the past month, the government has liquidated 82% of its Bitcoin reserves, selling nearly 41,000 BTC on the open market.
Rapid Sales and Market Stability
In the last three days alone, the German government has been selling substantial quantities of Bitcoin. At this pace, it could completely liquidate its remaining holdings within a day or two. Despite the significant sell-off, the Bitcoin price has remained relatively stable, hovering around $57,000.
There has been no official statement from the German government explaining the rapid sale of its Bitcoin holdings or the reasons behind its strategy of selling and partially rebuying BTC. The market, however, has managed to absorb the selling pressure, maintaining price stability.
Market Implications: Is the Bitcoin Bottom In?
After dropping to $53,500 earlier this week, Bitcoin has recovered to $58,000. While the German government has been selling, strong inflows into spot Bitcoin ETFs have helped counterbalance the selling pressure.
Despite the large-scale movements by the German government, the Bitcoin price has not seen significant volatility. Attention has now shifted to macroeconomic indicators. The U.S. Consumer Price Index (CPI) data for June came in lower than expected, but Bitcoin bulls have struggled to push prices higher. As of press time, Bitcoin is trading 1.4% down, slipping below $57,000.
On-chain data provider Santiment suggests this could be a "sell-the-news" movement for Bitcoin. The market is now closely watching for further macroeconomic developments and government actions that could influence Bitcoin's price trajectory.
As the German government approaches the end of its Bitcoin liquidation, market participants are left to speculate whether this marks the bottom for Bitcoin, or if further volatility is on the horizon.
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