In a significant move, the German Government has transferred more than 2,000 Bitcoin to exchanges and trading desks over a 24-hour period.
The large-scale movements has reduced Germany's Bitcoin holdings from 9,094 to approximately 6,894 BTC, according to data from blockchain analytics firm Arkham Intelligence.
As of July 12, 2024, the German Government (BKA) held approximately 6,894 Bitcoin, valued at $394.97 million based on the current price of $57,290 per Bitcoin.
The transfers began on July 11, with the government transferring a total of 5,000 BTC to various cryptocurrency exchanges and market makers since late last night.
The recipients of these transfers included major exchanges such as Coinbase, Kraken, and Bitstamp, as well as trading firms like Flow Traders and a wallet that Arkham has linked to institutional liquidity provider B2C2 Group.
In a subsequent move on July 12 at 15:02 UTC+8, the government continued its transfer activity.
It transferred 1,200 BTC, evenly distributed among Bitstamp, Kraken, and Coinbase (400 BTC each).
Additionally, 1,000 BTC were moved to an address suspected to belong to the B2C2 Group, and 500 BTC were sent to an unmarked address.
Interestingly, in two separate transfers early on Friday morning, 4,169 BTC were received back from Coinbase, Kraken, and Bitstamp. It might have been because of a failed sell transaction, but it’s hard to tell from onchain data.
Merely moving Bitcoin from government wallets to an exchange does not necessarily mean that the funds were sold.
These movements however, have reduced the German Government's Bitcoin holdings significantly. Prior to these transactions, the government held 9,094 BTC.
Meanwhile, in a research note on Friday, 10x Research stated that the selling pressure from the German government is easing, and Bitcoin appears technically oversold.
ETFs are buying the dip, and the Fed is expected to cut interest rates soon, providing the liquidity support many have anticipated, according to the report.
“If the Fed cuts rates solely due to inflation concerns in September 2024, it could be short-term bullish for Bitcoin. However, if growth concerns drive the cut, either in September or later, Bitcoin might face significant selling pressure,” the report stated.
Edited by Stacy Elliott.