L’Allemagne Sells Off Bitcoin Reserves, Slashing Holdings to $300M
The German government recently transferred 10,567 BTC, worth over $600 million, to exchanges such as Bitstamp, Coinbase, and Kraken, reducing its Bitcoin reserves to less than $300 million.
In just three weeks, Germany went from holding 50,000 BTC to less than 5,000 BTC, signaling the imminent end of its massive Bitcoin sell-off.
The 15% correction in Bitcoin’s price last month coincided with BTC movements by the US government and Mt. Gox creditors, adding selling pressure to the market.
This week saw another wave of Bitcoin transfers to exchanges, orchestrated by German authorities. The state of Saxony in Germany is quickly depleting its BTC reserves after numerous transfers to CEXs and market makers.
According to blockchain data analyzed by Arkham Intelligence, wallets linked to German authorities have transferred a total of 10,567 BTC, worth over $600 million, to platforms such as Bitstamp, Coinbase, Kraken, and service providers like Flow Traders and Cumberland DRW.
Reduction in Bitcoin Reserves
After these transactions, wallets associated with German authorities held only 4,925 BTC, worth $285 million. This represents a drastic decrease from the 50,000 BTC, valued at nearly $3 billion, held three weeks ago before the start of this selling campaign.
At this rate, Germany’s Bitcoin selling frenzy could end as soon as today or early next week, with approximately 35,000 BTC sold so far this week.
Strange Activities and Market Impact
The balance may still change due to the wallets’ peculiar practice of receiving a portion of the transferred assets, sometimes around $10 million, back from exchanges and brokers by the end of the day.
The imminent end of this $3 billion massive sell-off could reassure crypto investors, who have been concerned about on-chain movements by major potential sellers in the market in recent weeks, linking the recent asset price drop to concerns of oversupply.
The 15% correction in Bitcoin’s price in the past month coincides with significant BTC movements by the US government, which holds over $12 billion in confiscated bitcoins, by transferring $240 million of Silk Road-related BTC to Coinbase.
Furthermore, the liquidation of 140,000 BTC by the creditors of the now-defunct Japanese exchange Mt. Gox, set to occur this month, could also exert additional pressure on the market.
