Amid an apparent selloff that rapidly accelerated over the last two days, the German government has reduced its Bitcoin holdings to less than $1 billion as of Wednesday.
Germany has moved substantial amounts of Bitcoin from its wallets to various crypto exchanges and market markets in recent days, following slower movements in previous weeks. This selloff comes just a month after the government held approximately $3.46 billion in BTC as of June 10.
According to data from Arkham Intelligence, the German government currently holds 13,733 BTC, valued at $792 million—compared to 49,860 BTC just a month ago.
This sharp reduction in Bitcoin holdings is a part of the German government’s strategy to liquidate a significant portion of its digital assets. The government has transferred some $2 billion worth to exchanges and market makers within the last week alone.
German Bitcoin Wallets Transfer $344 Million to Exchanges, OTC Desks
German government crypto wallets have moved approximately $344 million worth of Bitcoin to exchanges and over-the-counter desks this morning, according to blockchain analytics platform Arkham Intelligence. Already this week, the German BKA wallets have moved $900 million worth of BTC on Monday and a further 362 million on Tuesday. The German law enforcement wallets now appear to have just north of $1 billion worth of Bitcoin left, according to Arkham. The Wednesday morning transfers include $73...
While that does not necessarily mean that the transferred assets have already been liquidated, it does suggest that the German government is looking to part with the cryptocurrency.
Amid Germany’s selloff, analysts at investment firm Bernstein on Wednesday reaffirmed their bullish stance on Bitcoin, which currently sits at a price of about $57,700—down over 4% from one week ago.
In a note shared with Decrypt, Bernstein maintained a highly optimistic view on Bitcoin's future, projecting a price target of $200,000 by 2025, $500,000 by 2029, and exceeding $1 million by 2033.
Bitcoin Bounces Above $59,000 as Fears on Germany's Sales Fade
The crypto market witnessed a revival late Tuesday evening, regaining some ground lost during the U.S.'s 4th of July celebrations. Bitcoin rose 5%, reaching as high as $59,300 before retracing slightly. The asset is trading at $59,000, CoinGecko data shows. Market participants continue to divine the impact stemming from the eventual sale of Bitcoin from Mt. Gox and the ongoing transfers from the German government to exchanges and market makers. Liquidations across the market jumped to $100 mill...
"We remain Bitcoin bulls,” the analysts wrote. They attributed this bullish outlook to Bitcoin's unique demand and supply dynamics, particularly the four-year halving cycle. Bitcoin’s price typically starts to rise months after the quadrennial halving, due to less new BTC entering the market alongside growing sell pressure for miners.
The success of spot Bitcoin ETFs in the United States further bolstered Bernstein's conviction.
"Currently, we understand that ~80% of the ETF flows are still coming from self-directed retail investors via broker platforms," the report states, indicating significant potential for institutional adoption.
Edited by Andrew Hayward
