German Government’s Bitcoin Wallet Hits Zero Following Transfer of 3,800 BTC on Friday
Highlights:
- Germany has sold off all its BTC holdings.
- The final batch of over 3,800 BTC was transferred to Flow Traders and 139Po on Friday.
- Mt. Gox reimbursements could further suppress BTC price.
According to data from Arkham Intelligence, the German government sold off its Bitcoin (BTC) holdings after 23 days of sales, concluding the process it began in late June. On July 12, the government transferred the final batch of 3,846.05 BTC, valued around $223.81 million, to “Flow Traders and 139Po,” which Arkham described as likely “institutional deposit/OTC service.” The decrease in the BTC supply overhang could potentially boost Bitcoin’s momentum.
BREAKING: The German Government is now out of Bitcoin.
The German Government just sent 3846.05 BTC ($223.81M) to Flow Traders and 139Po (likely institutional deposit/OTC service).
The German Government has 0 BTC ($0.00M) remaining. pic.twitter.com/R2vfylR1b2
— Arkham (@ArkhamIntel) July 12, 2024
In January, the German government seized approximately 50,000 Bitcoins valued at over $2 billion from operators of Movie2k.to, a defunct piracy website. Coinbase Institutional reported that Germany’s federal criminal police office, the Bundeskriminalamt (BKA), commenced selling the seized Bitcoin in mid-June.
Impact of Recent Government Sales and Mt. Gox Reimbursements on BTC Price
These sales increased the supply, which affected the crypto market, leading to fluctuations in BTC price. Since June, wallets associated with the German government have been systematically transferring funds to multiple exchanges, over-the-counter (OTC) desks, and an undisclosed address.
Despite the German government’s recent offloadings, selling pressure from the $9 billion Mt. Gox reimbursement plan may suppress Bitcoin’s price in the coming weeks. This could sustain the climate of fear, uncertainty, and doubt that has plagued the market in recent months. Analyst Jacob King believes that creditors looking to make big profits could potentially sell up to 99% of the BTC held by Mt. Gox.
Conversely, IG Markets analyst Tony Sycamore believes that the Mt. Gox payments will not cause the severe market disruption that many investors fear. He said it’s hard to predict how Mt. Gox creditors will act, but he expects about half of the reimbursement money to hit exchanges this July.
Over the last two weeks, BTC dropped from around $63,000 to $54,000. Despite rebounding to the $58,000 area, Bitcoin still needs to overcome several key price levels. After removing some of the excess supply, Bitcoin can maintain upward momentum. According to trader Rekt Capital, Bitcoin first needs to close the day above the $58,350 area and then achieve a weekly close above $60,600.
There's the rebound Bitcoin needed and price is now challenging that Lower High resistance again
Bitcoin needs to Daily Close above $58350 (black) to break the Lower High and more importantly – position itself for a rally to $60600 (blue)$BTC #Crypto #Bitcoin https://t.co/bKQww6Ixcy pic.twitter.com/8SOvWwFeP6
— Rekt Capital (@rektcapital) July 12, 2024
ETF Investors Buy the Dip
The timing of these German Bitcoin sales has coincided with significant inflows into US spot Bitcoin exchange-traded funds (ETFs). Over the past five consecutive days, these ETFs have attracted $1.19 billion in inflows, according to the data from Farside Investors. Additionally, a recent CryptoQuant report noted that whales have been buying the token at the fastest rate since April 2023, benefiting from lower prices caused by Germany’s sell-off.
Arkham’s tracker now indicates a zero balance for the German government’s Bitcoin holdings, signaling a major change in the crypto landscape. The impact of this divestment on the market continues to unfold as individual and institutional investors react to Bitcoin’s increased availability. At the time of writing, BTC was trading at $57,846, showing a 1.40% increase over the last 24 hours.
Read More
- Next Cryptocurrency to Explode in July 2024
- Crypto Price Predictions
- Best Solana Meme Coins to Buy In 2024
- Kraken Exec: Ethereum ETFs May Draw $1B Each Month
Syed Ali Haider
Ali Haider is a contributing crypto writer at Crypto2Community. He is a crypto and blockchain journalist with over six years of experience and has long advocated for digital freedom and cybersecurity. Haider has been featured in several high-profile crypto and finance outlets, including Coincult, AltcoinBeacon, BTCRead, and more.
View full profile ›ℹ️About Crypto2Community's Editorial Process
Crypto2Community's editorial policy is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict editorial policy and sourcing standards, and each page undergoes diligent review by our team of top crypto industry experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
