Germany Dumps Bitcoin on the Market
Germany has been selling a lot of Bitcoin recently. This week, they sent billions of dollars worth of Bitcoin to exchanges and market makers. Because of this, they don’t have much Bitcoin left to sell.
Big Bitcoin Sale Nears End
For weeks, there has been a lot of pressure to sell, and the crypto community has been worried. The German government is almost finished with their big Bitcoin selling campaign.
Back in June, Germany held 50,000 BTC. At today’s prices, that was worth $2.8 billion. These Bitcoins were taken from the owners of the film piracy site Movie2k in January of this year. Now, blockchain experts say the German government has moved most of those funds out of its digital wallet.
Bitcoin Holdings Shrink
As of today, data from Arkham Intelligence shows that Germany has only 6,435 BTC left in their wallets. That’s about $284 million at the current price. Early Thursday, German officials transferred a lot of Bitcoin to exchanges and market makers.
Where Is the Bitcoin Going?
Since June 20, Germany has sent billions of dollars in Bitcoin to places like Kraken, Coinbase, and Bitstamp. They have also sent Bitcoin to wealth management firm Cumberland and other addresses that are likely over-the-counter or institutional trading desks.
At first, the outflows were moderate. But earlier this week, the government sent out $900 million from its wallet on Monday alone.
Impact on Bitcoin Price
Most analysts believe that sending Bitcoin to trading platforms means it’s being sold on the market. This has added to the selling pressure, causing Bitcoin’s price to drop. On Thursday, Bitcoin was trading at $57,500, down 13% over the last month.
Transfer Doesn’t Always Mean Sale
Transferring Bitcoin to an exchange doesn’t always mean it will be sold. Sometimes, the government gets Bitcoin back into its wallet after sending it to an exchange, like Kraken.
Nearing Zero Balance
Despite this, the state’s Bitcoin balance is quickly heading towards zero. This means the government’s threat to crash the market may soon be over. Some Bitcoin investors think Germany is missing out on future gains by selling now.
Future Geopolitical Blunder?
Capriole Investments founder Charles Edwards tweeted, “In a few years, this will be looked back on as one of the biggest geopolitical blunders of all time. It will be studied in universities.”
Conclusion
Germany’s massive Bitcoin selloff is almost over. With only $369 million worth of Bitcoin left, the impact on the market is significant. While some see this as a missed opportunity, others are glad the selloff is ending. The future will tell if this was a wise move or a major mistake.
