- Germany has concluded its extensive Bitcoin (BTC) liquidation.
- The country sold over $3 billion worth of Bitcoin, as revealed by on-chain analysis platform Arkham.
- As of July 12, Germany no longer holds any Bitcoin, having transferred the last portion to institutional OTC traders Flow Traders and 139Po.
Germany has sold its entire Bitcoin holdings, marking the end of a significant phase in the market.
The Final Bitcoin Transaction of the German Government
According to Arkham, an on-chain analysis platform, the German government’s Bitcoin reserves hit zero on July 12. The final transaction involved the transfer of 3,846 BTC, worth approximately $223.81 million, to institutional over-the-counter (OTC) traders Flow Traders and 139Po. This move marks the culmination of a significant liquidation effort that saw the nation clear its Bitcoin holdings entirely.
The Impact on Market Dynamics
In the earlier stages of this selling activity, the German government began to offload assets acquired from darknet markets and cybercrime busts. The influx of such a substantial amount of Bitcoin into the market exerted noticeable selling pressure, resulting in significant price fluctuations. A particularly impactful moment occurred last week when over 10,000 BTC were moved in a single transaction, causing a sharp decline in Bitcoin’s price.
Market Recovery and Current Bitcoin Price
With the cessation of these large-scale sales, the immediate downward pressure on the cryptocurrency market has alleviated, leading to positive price movements for Bitcoin and other digital currencies. Over the last 24 hours, Bitcoin experienced a 2% increase in its value, trading at $58,200 at the time of writing, according to data from CoinGecko.
Conclusion
The German government’s sale of its Bitcoin holdings marks a significant event in the cryptocurrency market, reflecting the complexities and influences of state interventions. As the market begins to recover from the selling pressure, investors and analysts alike will be watching closely to see how Bitcoin and other cryptocurrencies adjust in this new context. Future market movements will likely be influenced by how quickly the market can absorb and stabilize following these significant transactions.
