![German Government’s Bitcoin Holdings Plunge to 5,800 BTC After Major Sales](https://ik.imagekit.io/techloot/wp-content/uploads/2024/07/tr:n-lt_featured_image_single_mb/Screenshot_878.jpg)
The German government has drastically reduced its Bitcoin holdings, with the current balance standing at 5,800 BTC after selling 88.4% of its original 50,000 BTC.
On July 12, the German government resumed the sale of its Bitcoin assets. This move followed the return of some previously transferred BTC to the government’s Bitcoin wallet. According to Arkham blockchain data, the German government executed several transactions, moving a total of 3,200 Bitcoin across various platforms.
Recent Transactions
The Bitcoin transactions were sent to Bitstamp, Kraken, and Coinbase, each receiving 400 BTC. Additionally, two unknown addresses received 1,000 BTC and 500 BTC, respectively. Crypto analyst Michaël van de Poppe shared his thoughts on X, speculating that the remaining Bitcoin, worth approximately $300 million, would likely be sold on July 12.
![Image credit: X/Michael van de Poppe](https://ik.imagekit.io/techloot/wp-content/uploads/2024/07/Screenshot_877.jpg)
Historically, large-scale sales by government entities can lead to increased market volatility. However, the strategic distribution of Bitcoin across multiple platforms might help prevent sudden and extreme price swings.
The German government’s Bitcoin wallet, which holds assets seized from a film piracy website earlier this year, has transferred billions of dollars in Bitcoin since June 19, with a notable increase in activity at the beginning of July.
Market Sell Pressure
Starting with 50,000 Bitcoin, the wallet has sold a significant portion of its holdings over the past month. With 5,800 Bitcoin remaining, the German government has sold 44,200 BTC, representing 88.4% of the initial amount.
On July 11, the German government’s Bitcoin wallet briefly fell below 5,000 BTC after transferring approximately $615 million worth of Bitcoin to various cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders, and two unknown addresses, according to blockchain analytics firm Arkham.
German lawmaker and Bitcoin advocate Joana Cotar has expressed her disappointment over the large-scale sale of Bitcoin. She suggested that the cryptocurrency could have been used as a hedge against risks associated with the traditional financial system by adopting it as a “strategic reserve currency.”
Market Implications
The recent decline in Bitcoin’s price can be attributed to several factors, including Germany’s significant sale of BTC and concerns over Mt. Gox releasing a substantial amount of Bitcoin worth more than $8 billion to its creditors. These events have led to market uncertainty and downward pressure on Bitcoin prices.
In summary, the German government’s substantial reduction in its Bitcoin holdings has had a notable impact on the market. The strategic distribution of these assets aims to minimize market disruption, though significant sales by government entities typically result in increased volatility.
By Andrej Kovacevic
Updated on 18th July 2024