Germany has finally sold off the last of its Bitcoin stash on July 12, 2024. According to Arkham Intelligence, the final sale included 3,846 Bitcoin transferred to “Flow Traders” and “139Po,” described as institutional deposit and OTC service.
This wraps up a few intense weeks where the German government sold tens of thousands of Bitcoin in multiple transactions. The German government has been dumping Bitcoin for the last three weeks.
Source: Arkham
This large sale played a big part in keeping the Bitcoin market below the $60,000 price mark and under its 200-day exponential moving average.
The selling pressure might continue due to the $9 billion Mt. Gox reimbursement plan, which could keep Bitcoin prices low in the coming weeks.
The market has been dealing with fear, uncertainty, and doubt for a while now. Despite the selling frenzy, some institutional investors saw this as a buying opportunity.
Data from CoinShares shows that U.S. exchange-traded funds (ETFs) had $295 million in inflows for the week of July 8. This reversed weeks of low inflows into these investment funds. Clearly, institutions were quick to grab Bitcoin at lower prices.
Germany’s series of staggered Bitcoin transfers to various exchanges started last month. However, not everyone is on board with this strategy. Cryptopolitan reported that Joana Cotar, a federal parliament member, has criticized the government’s decision to sell Bitcoin.
She believes that this move has increased market volatility and could have long-term negative effects on the cryptocurrency market.
Cotar argues that Bitcoin should be treated as a national strategic reserve. Especially since Germany’s economy has been struggling for some time.
“The hasty disposal of state-owned Bitcoin is not sensible and counterproductive,” she said. Cotar thinks Bitcoin could help Germany diversify its treasury assets and act as a hedge against inflation.
The Bitcoins in question were confiscated from the illegal website Movie2k.to, which accounted for about 50,000 Bitcoins.
In her letter, Cotar invited four German politicians to the “Bitcoin Strategies for Nation States” event in October. She hopes to change their views on Bitcoin. Despite Cotar’s criticism, the German government went ahead with its plan.
But Bitcoin has defied the odds too, managing to hold its ground in the face of it all. At press time, the crypto diva was worth $57,800.