German Government to Sell $275 Million in BTC
10 Jul, 2024 ● Crypto News
The German government continued its Bitcoin sell-off by transferring roughly 3,100 BTC, worth about $178 million, within an hour on July 9.
Simultaneously, the government withdrew approximately 1,700 BTC, valued at around $91.78 million, from Bitstamp, reclaiming BTC holdings from the exchange.
Additionally, the German government moved another 3,107 BTC from its main holdings, likely in preparation for a further imminent sell-off.
Currently, the main government address holds around 26,000 BTC worth $1.5 billion, while the address used for off-loading holds 4,800 BTC worth $276.61 million.
Since 7:30 am UTC on July 9, there has been a total outflow of 3,100 BTC, with 2,500 sent to an unknown B2C2 Group, 400 BTC to the centralized exchange Kraken, and the remaining 200 to an unknown wallet.
On July 8, the German government sold an additional $900 million worth of BTC, indicating plans to continue gradually selling off its remaining $1.5 billion in Bitcoin holdings.
The same 16,309 BTC sold is now worth over $930 million, suggesting that buyers remain confident in purchasing BTC at this price range.
Wall Street traders anticipate a 72% chance of the US Federal Reserve cutting interest rates in September, which could potentially boost investment in BTC.
This macroeconomic trend tends to significantly impact assets like BTC, as it is still viewed as a risk-on asset, unlike assets like gold, which attract liquidity during geopolitical instability.
The BTC sell-off coincides with reduced BTC miner activity and reserve sell-offs, indicating that market sentiment might be nearing its bottom.
According to Bitfinex analysts, market data from July 6 and 7 evidenced this local bottom despite Mt. Gox beginning its BTC and Bitcoin Cash (BCH) repayments.
Despite the BTC sell-offs by the German government and Mt. Gox repayments to creditors, several indicators suggest BTC is poised for a rebound.
BTC reached its lowest point since late February, touching $53,550 before rising to current highs of $57,600.
However, the relative strength index indicator showed a growing divergence between the fall in price and the rise in RSI value, suggesting weakening sell pressure.
Sources:
https://cointelegraph.com/news/german-government-prepares-next-276m-btc-selloff
https://platform.arkhamintelligence.com/explorer/address/139PoPE1bKQam8QJjhVjYDP47f3VH7ybVu
