Bitcoin
German government moves another $17 million worth of Bitcoin to exchanges
The German government stepped up the sale of its Bitcoin holdings on Tuesday and transferred a total of 282.74 BTC, valued at approximately $17.64 million, to major cryptocurrency exchanges Bitstamp, Coinbase and Kraken.
O transactions occurred at 4:20 pm Indonesia Central Time.
This follows a broader divestment trend by the German government, with over 3,000 BTC moved to centralized exchanges (CEX) in the past two weeks.
On June 22, 2024, Germany’s Bitcoin holdings were valued at $3.06 billion, with the Bitcoin price at $64,827 and a total amount of 47.18K BTC. On July 2, 2024, these holdings decreased to $2.89 billion, as the Bitcoin price fell to $62,671 and the wallet’s holdings were reduced to 46.19K BTC.
Over the past 10 days, the German government has sold nearly 1,000 BTC, wiping out about $163.5 million in Bitcoin holdings. The latest transfer of 282.74 BTC further signifies the ongoing liquidation of Bitcoin assets.
Bitcoin’s price dropped from $64,827 to $62,671 in the same period.
The falling prices and substantial sales suggest a strategic sell-off by the government to capitalize on high prices or adjust financial strategies.
The cumulative sale of over 3,000 BTC in two weeks indicates significant market activity by the German government.
This trend of liquidating large amounts of Bitcoin could impact market sentiment and price stability, especially as these assets enter the broader market via major exchanges.
Commenting on the potential impact on the market, Raj A. Kapoor, Founder of the Blockchain Governance Council, told Decrypt that such significant moves could create uncertainty and fear among investors. A large entity like a government moving large amounts of Bitcoin could be interpreted as a lack of confidence in Bitcoin or a precursor to regulatory action, triggering a sell-off, he added.
“This will result in short-term volatility as large transfers can cause short-term price fluctuations as traders react to the news. The actual impact will ultimately depend on current market conditions, overall liquidity and how the news is received and interpreted by market participants,” he said.
Kapoor also addressed whether the government could hold on to some of its Bitcoin holdings to drive higher prices.
“If government analysts believe that Bitcoin prices are likely to increase in the future based on market trends, economic indicators, and expert forecasts, they may choose to hold their holdings,” he said. “Historical data showing Bitcoin’s long-term growth potential may support this decision.”
Edited by Stacy Elliott.