In a significant move, the German government recently sold 400 Bitcoins (BTC) on major exchanges Kraken and Coinbase. This action, executed at 15:38 UTC+8, has triggered investor concerns and market ripples. The 400 BTC, valued at $24.4 million based on current cryptocurrency prices, were deposited in a strategic sell-off that has impacted Bitcoin’s market dynamics.
German Government’s Bitcoin Sell-Off
Blockchain analysis platform Arkham Intelligence reports that this 400 BTC deposit is part of a broader strategy. Previously, German authorities offloaded over 1,700 BTC worth $110 million across Kraken, Coinbase, and Bitstamp. The government currently holds approximately $2.8 billion in Bitcoin, which includes $1.1 billion in unrealized profits.
This significant sell-off aligns with increased activity from Bitcoin whales. Following weeks of stagnant price action, these large holders have capitalized on gains following the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in January.
The 400 BTC were evenly distributed, with 200 coins deposited on Kraken and another 200 on Coinbase. This substantial sell-off, coupled with two consecutive weeks of outflows from spot BTC ETFs, has contributed to Bitcoin’s price decline. Bitcoin is currently testing the $60,000 price level.
Government Holdings and Market Trends
Arkham’s data shows that as of June 18th, the German government held 49.86K BTC, valued at $3.32 billion with Bitcoin priced at $66,642 each. By June 25th, holdings had reduced to 47.18K BTC, valued at $2.98 billion with Bitcoin priced at $63,190, marking a net change of $341.46 million in government holdings.
Farside Investors’ data indicates that the German government’s sell-off coincides with $174.5 million worth of outflows from the spot BTC ETF on June 24th. Notably, Grayscale’s GBTC, Fidelity’s FBTC, and Franklin Templeton’s EZBC experienced outflows of $90.4 million, $35.2 million, and $20.9 million respectively, while BlackRock’s IBIT remained neutral.
Prominent whale activities have also influenced the market. Crypto trader “Ash Crypto” highlighted a significant purchase by a Bitcoin whale, who acquired BTC worth $961 million, incurring a transaction fee of just around $3. This activity suggests that some investors are taking advantage of the recent price dip.
Recent Bitcoin Crash
As per CoinMarketCap, Bitcoin’s price at the time of writing stands at $61,267, reflecting a 0.17% increase in the past 24 hours. The cryptocurrency’s market capitalization is approximately $1.2 trillion, with trading volume surging by 59.46%, currently valued at $38.319 billion. Over the past week, BTC has declined by 6.43% and has seen an 11.71% drop over the last 30 days.
Bitcoin is currently down by around 16.89% from its all-time high of $73,750 recorded earlier this year in March. The Mt. Gox repayments and significant BTC movements by the German government have contributed to this decline.
The German government’s recent Bitcoin liquidation highlights the dynamic and volatile nature of the cryptocurrency market. Investors and market watchers will closely monitor how these large transactions impact Bitcoin’s price and the broader market in the coming days.