Bitcoin Selloff Intensifies As German Govt. Offloads 2700 BTC To Exchanges

Highlights

The German government transferred 3450 BTC to major exchanges like Coinbase, Kraken, and Bitstamp, and various addresses.
Following these transactions, Germany's remaining Bitcoin reserves have plummeted to $350.16 million.
In a twist, Kraken and Bitstamp returned 500 BTC, slightly increasing Germany's holdings.

The German government has continued its Bitcoin selloff, transferring 3450 BTC to various exchanges and addresses. This transfer occurred on Friday, July 12, with coins moving to major exchanges like Coinbase, Kraken, and Bitstamp, as well as to addresses starting with bc1qu3 and 139Po. Following this transfer, the German government’s remaining Bitcoin holdings have decreased to 6394 BTC.

This latest move is part of an ongoing strategy to liquidate a portion of the government’s substantial Bitcoin holdings, which were originally seized from a movie piracy website. The sale represents a significant step in the government’s efforts to manage these digital assets.

Distribution and Impact on Reserves

According to Arkham Intelligence data, the 2700 BTC transfer was distributed across several exchanges and addresses. Coinbase, Kraken, and Bitstamp each received 400 BTC, valued at approximately $22.90 million per exchange while Cumberland received 748.25 BTC valued at $42.78 million. The remaining 1500 BTC were sent to various other addresses, suggesting potential future bitcoin selloffs.

A notable transaction involved 1000 BTC (worth about $57.26 million) being transferred to an address associated with the B2C2 Group. This address, 139PoP…H7ybVu, has been observed frequently receiving funds from the German government and typically acts as an intermediary, redistributing funds to other wallets. An additional 500 BTC, valued at around $28.63 million, was moved to another address, potentially indicating further upcoming liquidations. These transactions have significantly impacted Germany’s Bitcoin reserves, reducing them to 5,646 BTC.

In a twist, Arkham data revealed that Kraken and Bitstamp subsequently transferred 500 BTC back to the German government address. These recent development saw exactly 250 BTC sent by each of the above exchanges sent to the German Government address. This has slightly increased the total remaining holdings to a current valuation of $350.16 million.

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Historical Context and Market Impact

The current bitcoin selloff is part of a larger trend that began in mid-June 2024. On June 18, the German government reportedly held 50,000 BTC. Since then, there have been several large-scale transfers, including over 10,600 Bitcoin offloaded on July 10, which stripped the government of its “Bitcoin Billionaire” status.

Despite these substantial Bitcoin selloffs, the Bitcoin price has shown resilience, remaining relatively stable around $57,000. However, the cumulative effect of these sales has not been without impact. Earlier in the week, on July 8, Bitcoin hit a four-month low, dropping below $54,000. Over the past 20 days alone, the German government has liquidated approximately 39,000 Bitcoins from its reserves.

While these sales initially exerted downward pressure on the Bitcoin price, the market appears to have largely absorbed the impact. As of the latest data, Bitcoin is trading at $57,246.53, with a 24-hour trading volume of $23.1 billion and a market cap of $1.1 trillion, showing a slight decline of 1.77% in the past 24 hours.

Also Read: US SEC Eases Crypto Reporting For Banks And Brokerages

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