Crypto Market Awaits Response as German Government Completely Sells Off Bitcoin Holdings
The cryptocurrency market is closely watching the aftermath following the recent news that the German government has completed the sale of all its Bitcoin (BTC) holdings. On-chain data reveals that the government concluded its sell-offs through a series of transactions on July 12.
This development has stirred discussions within the crypto community, sparking speculation about the potential long-term impact on the market.
According to data from Arkham Intelligence, the German government initiated its sales spree by sending 2,700 BTC to major exchanges like Kraken, Bitstamp, and Coinbase on July 12. They also utilized other institutional deposit services for these transactions.
Following the initial sell-off, the government received 4,169 BTC back, which suggests an attempt to manage the impact of the sales. However, further transactions involved sending 748.25 BTC to Cumberland and another 2,300 BTC to Kraken and other services.
In the final transactions, the government sent 3,049 BTC to an institutional deposit service and 752.17 BTC to Flow Traders. Interestingly, Bitcoin’s price saw a slight increase from $57,232 to $57,896 as a result of the government’s complete divestment. At the time of writing, Bitcoin is trading at approximately $57,811.
The crypto community has expressed a mix of relief and concern over this development. While some members relieved that the government has completed its selling spree, others anticipate that the decision might lead to regrets in the future.
It is worth noting that the German government’s sales spree began on June 19, and significant daily sales have impacted the market since then. Initially, Bitcoin was trading around $65,000, but it has struggled to surpass the $60,000 mark amid the intensified selling.
Despite the short-term liquidity shock caused by these sales, experts believe that long-term bullish factors will eventually drive significant growth in the market once it absorbs the impact. Renowned crypto trader Michaël van de Poppe pointed out that the market has already absorbed around $3.5 billion in sell pressure over the past few weeks.
Van de Poppe expressed optimism, stating, “Bitcoin is still at $58,000. The rotation is around the corner.”
Overall, the crypto market is eagerly awaiting the reaction and potential consequences following the German government’s complete divestment from Bitcoin.