By
Godfrey Benjamin
July 3rd, 2024
The German government has joined Bitcoin miners in a selling spree over the past few weeks, thus weighing on the bullish momentum.
The German government continued with its recent Bitcoin (BTC) selling spree on Monday, July 1. According to on-chain data, the German government sent more than 1.5K Bitcoins, worth more than $94 million, to different exchanges on Monday during the early European session.
The German government has joined other crypto whales in accelerated sell-offs. Moreover, crypto investment products have so far registered three consecutive weeks of cash outflows. Already, the Bitcoin miners’ capitulation level has reached the lowest level since the FTX collapse. Additionally, the United States government has been cited selling its seized crypto holdings in the past few days.
German Government and Bitcoin Holdings
According to on-chain data, the German government currently holds about 44.692K Bitcoins, worth around $2.8 billion. In the past 24 hours, the Bitcoin address associated with the German government sent several hundreds of BTCs to Bitstamp, Coinbase Global Inc (NASDAQ: COIN), and Kraken.
As Coinspeaker previously reported, the German government has been on a market dump in the past few weeks. Precisely, the German government has offloaded more than 2.7K Bitcoins in the past two weeks.
The German government first acquired the 50K Bitcoins following a major seizure back in 2013 involving Movie2k.to, a defunct film privacy website.
The country has gradually adopted Web3 and digital assets to bolster its economic status, a similar move to other countries. Furthermore, the Web3 space has significantly reduced unemployment in most countries that have enacted clear crypto regulations.
Additionally, more global investors are willing to dabble down into the web3 sector to tokenize real-world assets (RWA) and reach more markets.
Market Impact
The continued Bitcoin sales by the German government have weighed heavily on BTC’s bullish sentiment. The flagship coin has moved from hovering around $70K in the past few weeks to around $61K in the past few days.
However, as Coinspeaker reported, Bitcoin price is on a bullish trajectory after the six-month candle closing above $62K for the first time in its history. The long-term demand for Bitcoin has helped it consolidate in a bullish flag in anticipation of further gains ahead.
Moreover, most crypto analysts believe Bitcoin price is well positioned to close above $100K this year fueled by institutional investors. The US-based spot Bitcoin ETFs have begun accumulating more coins after a shake-off period that saw accelerated sell-offs.
The fact that the German government has held on its Bitcoin holdings for more than a decade is a bullish signal. More countries led by the United States and China still hold a significant amount of their initial Bitcoin holdings.