The German government stepped up the sale of its Bitcoin holdings on Tuesday, transferring a total of 282.74 BTC, worth roughly $17.64 million, to major cryptocurrency exchanges Bitstamp, Coinbase, and Kraken.
of transaction It happened at 4:20pm Indonesian central time.
This is in line with a broader trend of divestment by the German government, with over 3,000 BTC moved to centralized exchanges (CEXs) in the past two weeks.
As of June 22, 2024, Germany’s Bitcoin holdings were worth $3.06 billion, with a Bitcoin price of $64,827 and a total volume of 47.18K BTC. By July 2, 2024, these holdings had decreased to $2.89 billion as the Bitcoin price fell to $62,671 and wallet holdings shrunk to 46.19K BTC.
Over the past 10 days, the German government has sold approximately 1,000 BTC, reducing its Bitcoin holdings by approximately $163.5 million. The latest transfer of 282.74 BTC further indicates the continued liquidation of its Bitcoin assets.
Bitcoin’s price fell from $64,827 to $62,671 during the same period.
The price decline and significant sales suggest that the government is making strategic sales to take advantage of high prices or adjust its financial strategy.
The cumulative sales 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 have an impact on market sentiment and price stability, especially as these assets enter the broader market through major exchanges.
Raj A. Kapoor, founder of the Blockchain Governance Council, spoke about the possible impact on the market: Decryption Such a big move could create uncertainty and fear among investors, and a large entity like a government moving large amounts of bitcoin could be interpreted as a lack of confidence in bitcoin or a sign of regulatory action, which could trigger a sell-off, he added.
“This will result in short-term volatility as traders react to the news, as large transfers may create short-term price movements. The actual impact will ultimately depend on current market conditions, overall liquidity and how market participants perceive and interpret the news,” he said.
Kapoor also discussed the possibility of the government holding some of its Bitcoin holdings at a higher price.
“If government analysts believe that bitcoin’s price is likely to rise in the future based on market trends, economic indicators and expert forecasts, they may choose to hold on to it,” he said. “Historical data showing bitcoin’s long-term growth potential may support this decision.”
Editor: Stacey Elliott.
