- The German Government’s Bitcoin holdings have dropped to nearly zero after major selloffs.
- Bitcoin price has shown a 1.59% increase in the last 24 hours.
In the past few weeks, the German government’s Bitcoin selling was the most discussed and watched within the crypto community. The government of Germany in a span of three weeks has managed to sell a notable 50,000 BTC. In the last 24 hours, their BTC holdings have fallen to almost zero, indicating an end to their BTC selling. Their last transaction was to a wallet address identified as ‘139Po’ consisting of 3.094K BTC.
According to Arkham Intelligence data, the German government’s wallet is drained of all the BTC and is almost near zero. The government doesn’t hold any other tokens, indicating that its motive was purely to sell the Bitcoin tokens. Notably, in January, the German government acquired 49,857 Bitcoin worth approximately $3 billion at current prices.
According to reports, they confiscated the tokens from a website charged with money laundering. Additionally, some statements included that the tokens were confiscated by a German state, Saxony, and not the German government itself. Subsequently, three weeks ago they began dumping the tokens onto leading exchanges such as Binance, Coinbase, and Kraken.
How Did the German Government’s Selling Affect Bitcoin?
Initially, the German government’s whale movements caused huge turbulence in Bitcoin prices. Due to Mt.Gox transactions occurring around the same time, the cryptocurrency’s price took a hit causing a bearish run. From trading near the $66K level, Bitcoin slid down to a monthly of $53,550 at the beginning of July.
During these three weeks, the German government transferred BTC in batches ranging around 500, 750, thousand, and several whale movements crossing $2K. In terms of receivers, the token, apart from major exchanges, also transferred Bitcoin tokens to anonymous wallets. Moreover, some of the exchanges, Kraken and Coinbase, sent some of the Bitcoin back to the German government’s wallet.
The government’s selling drew market attention, and as it was one of the causes of the recent market crash, community members criticized the national government. Additionally, leading market experts stated that the organizational body is making a mistake as the digital assets worth is bound to increase.
Meanwhile, the token showed increasing resilience to the whale movements, particularly in the past few days. Bitcoin managed to wind the storm at the $57K level and as the Government’s selling ends, market watchers are expecting bullish movements. At the time of writing, Bitcoin was trading at $58,031 according to CMC data.
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