German Government Sells an Additional $17 Million Worth of Bitcoin on Exchanges
In a continued effort to divest its Bitcoin holdings, the German government has sold off 282.74 BTC, equivalent to approximately $17.64 million, on major cryptocurrency exchanges Bitstamp, Coinbase, and Kraken.
The transactions took place at 4:20 p.m. Central Indonesian Time.
This comes as part of a larger trend, as over the past two weeks, Germany has moved over 3,000 BTC to centralized exchanges (CEX).
As of June 22, 2024, Germany’s Bitcoin holdings were valued at $3.06 billion, with 47.18K BTC in total. By July 2, 2024, these holdings had decreased to $2.89 billion, with the price of Bitcoin dropping to $62,671 and the wallet holdings reduced to 46.19K BTC.
In the last 10 days alone, the German government has sold almost 1,000 BTC, resulting in a decrease of approximately $163.5 million in Bitcoin holdings. This recent transfer of 282.74 BTC further signifies the ongoing liquidation of Bitcoin assets.
During the same period, Bitcoin’s price has gone down from $64,827 to $62,671.
The significant drop in price and substantial sales suggest that the government is strategically selling off its Bitcoin to take advantage of high prices or adjust its financial strategies.
The cumulative sale of over 3,000 BTC in just two weeks indicates notable market activity by the German government.
This trend of selling large amounts of Bitcoin could potentially impact market sentiment and price stability, especially as these assets enter the broader market through major exchanges.
Commenting on the potential market impact, Raj A. Kapoor, Founder of the Blockchain Governance Council, expressed concern that significant movements like this can create uncertainty and fear among investors. He added that a government selling off large amounts of Bitcoin could be interpreted as a lack of confidence in the cryptocurrency or a precursor to regulatory actions, which may prompt a sell-off.
Kapoor also addressed speculation on whether the government might hold onto some of its Bitcoin holdings for higher prices.
“If the government analysts believe that Bitcoin prices are likely to increase in the future based on market trends, economic indicators, and expert forecasts, they might choose to hold onto their holdings,” he said. “Historical data showing Bitcoin’s long-term growth potential might support this decision.”
The article has been edited by Stacy Elliott.