9 July 2024
The price of Bitcoin has crashed again as the German government continues its BTC selling spree. The government has already sold millions of dollars worth of Bitcoin, putting immense pressure on the pioneer cryptocurrency amidst broader market volatility.
German Government Initiates Massive BTC Sell-Off
Bitcoin’s consistent price decline has been driven by multiple factors including outflows from Spot Bitcoin ETFs, unfavorable market conditions and Mt Gox’s BTC redistribution plans. Lately, the cryptocurrency’s price has been further pressured by the substantial BTC sell-offs executed by the German government.
For weeks, Germany has sold thousands of Bitcoin worth hundreds of millions of dollars. On June 25, blockchain analytics platform Arkham Intelligence reported that the government sold 900 BTC worth about $52 million. They moved 400 BTC to Coinbase and Kraken and transferred the rest to an unidentified address.
Additionally, last week the German government executed another major Bitcoin sell-off, transferring a whopping 3,000 BTC valued roughly at $172 million to exchanges. The government moved 1,300 BTC to Kraken, Bitstamp, and Coinbase and sold the rest to an unknown wallet address.
The most recent BTC transaction was on Monday, June 8, when the German police sold an additional 2,738.7 BTC worth approximately $155.3 million. Arkham Intelligence revealed that the Bitcoin was likely sold to crypto exchanges or market makers, including Kraken, Cumberland, 139Po, and address bc1qu.
As of writing, the German government still holds a staggering amount of Bitcoin. Arkham’s data has revealed that the government’s holdings amount to 26,053 BTC valued at approximately $1.49 billion.
Despite the BTC’s recent crash, the German government Bitcoin continues to sell their BTC holdings at a rapid pace. Joanna Cotar, a member of the German Bundestag, the National parliament of the Federal Republic of Germany, has shown her displeasure with the government’s decision to sell off their BTC holdings.
Cotar disclosed that the government should be strategically holding BTC and not selling them off. She disclosed that their recent BTC sell-offs were counterproductive and not sensible, urging the government to utilize their BTC as a strategic reserve currency.
Bitcoin Price Update After Crash
Over the past week, Bitcoin’s price fell by a substantial 8.71% after crashing by 17.10% in the past month. This decline has been attributed to unabating selling pressures and recent bearish trends in the crypto market.
Since the beginning of June, Bitcoin’s price movements have been displaying weakness and underperforming significantly. Despite inflows into Spot Bitcoin ETFs, Bitcoin had remained volatile under the $60,000 price mark, showing minor upward momentum.
Including the German government’s BTC sell-offs, crypto analyst, Ali Martinez has also revealed in an X post that Bitcoin whales have sold over 30,000 BTC worth approximately $1.8 billion in the past month. This 30,000 BTC sell-off which surpasses the German government’s current Bitcoin holdings has contributed significantly to Bitcoin’s decline to its present price of $57,039, according to CoinMarketCap.