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German Government's Bitcoin Holdings Selling Spree Pressures Market Momentum

In recent weeks, the German government has been actively liquidating its Bitcoin holdings, significantly influencing the cryptocurrency market.


In recent weeks, the German government has been actively liquidating its Bitcoin holdings, significantly influencing the cryptocurrency market.
Credit: Foretoken Media 2024

BERLIN – On Monday, July 1, on-chain data revealed that the government transferred over 1,500 Bitcoins, valued at more than $94 million, to various exchanges during the early European session. The move aligns Germany with other major crypto holders who have accelerated their sell-offs.


Notably, crypto investment products have recorded three consecutive weeks of cash outflows. Bitcoin miners' capitulation has reached its lowest level since the FTX collapse, and the United States government has also been selling its seized crypto assets recently.


Current Bitcoin Holdings and Recent Transactions


Data indicates that the German government holds approximately 44,692 Bitcoins, worth around $2.8 billion. In the past 24 hours, significant transactions have been made to exchanges like Bitstamp, Coinbase, and Kraken. Over the past two weeks, Germany has sold more than 2,700 bitcoins.


The Germany government continues to sell bitcoin.
The Germany government continues to sell bitcoin. Image credit: CoinMarketCap.

Germany's bitcoin holdings originated from a significant seizure in 2013 involving the defunct film privacy website Movie2k.to. Since then, the country has gradually integrated Web3 and digital assets to enhance its economic position, mirroring strategies adopted by other nations. The Web3 sector has notably reduced unemployment in countries with clear crypto regulations, attracting global investors to tokenize real-world assets (RWA) and expand their market reach.


Effect on Bitcoin Market Sentiment


The ongoing bitcoin sales by the German government have negatively impacted BTC's bullish sentiment. The cryptocurrency has recently declined from around $70K to approximately $61K. Despite this, Bitcoin's long-term demand remains strong, with the six-month candle closing above $62K for the first time, suggesting a bullish trend.


Many crypto analysts predict that Bitcoin could surpass $100K this year, driven by institutional investors. US-based spot Bitcoin ETFs have started accumulating more coins following a period of accelerated sell-offs.


Germany's prolonged holding of Bitcoin for over a decade is viewed as a positive signal. Other countries, including the United States and China, continue to maintain substantial portions of their initial Bitcoin holdings, contributing to the long-term bullish outlook for the cryptocurrency.

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