German Bitcoin Wallet Drops to 5,800 BTC After Massive Selloff

The German government resumed selling off its Bitcoin holdings on July 12, after some previously transferred funds were returned to the government’s Bitcoin wallet.

According to Arkham Blockchain data, the German government executed several transactions, transferring a total of 3,200 Bitcoin (BTC) across various platforms. The transactions were confirmed at exactly 15:02 UTC+8.

Recent transfers

Bitcoin distribution was 1,200 BTC in total, with Bitstamp, Kraken, and Coinbase each receiving 400 BTC. Additionally, 1,000 BTC was sent to an address believed to belong to the B2C2 group, specifically 139PoP… H7ybVu., while 500 BTC was sent to an undisclosed address identified as bc1qu3… guzr4j.

Meanwhile, cryptocurrency analyst Michael van de Poppe shared a post on the X social platform, speculating that the remaining Bitcoin (BTC), worth around $300 million, is likely to be sold on July 12.

Historically, large-scale sell-offs by government agencies can lead to increased market activity and potential price fluctuations. However, carefully distributing your Bitcoin across multiple platforms can help prevent sudden and extreme price fluctuations.

The German government’s wallets are said to hold Bitcoin (BTC) seized in a January crackdown on movie piracy websites, and billions of dollars in Bitcoin have been transferred since June 19, but activity has accelerated since early July.

Market selling pressure

Starting with 50,000 bitcoins, the wallet has moved a significant portion of its holdings over the past month. With 5,800 bitcoins remaining, the German government has successfully sold 44,200, or 88.4% of the original 50,000.

Related: Bitcoin Crash Surges ‘Buy the Dip’ Mentions on Social Platforms

According to blockchain analytics firm Arkham, on July 11, the German government’s Bitcoin wallet temporarily dropped below 5,000 BTC after transferring approximately $615 million worth of Bitcoin (10,620 BTC) to various cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders, and two unknown addresses.”

Joanna Cotard, a German parliamentarian and Bitcoin advocate, has expressed her displeasure at the massive Bitcoin sell-off in Germany, suggesting instead that the cryptocurrency could be used as a “strategic reserve currency” to hedge against risks in the existing financial system.

The recent Bitcoin price decline can be attributed to a combination of factors, including a massive BTC sell-off in Germany and concerns that Mt. Gox will release a significant amount of Bitcoin worth over $8 billion to bondholders, which has led to increased market uncertainty and downward pressure on the price.

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