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The German government amassed an impressive portfolio of 50,000 Bitcoin after seizing it from pirated movie site operators in January. Amid the recent drop in BTC’s price, the government strategically offloaded some of its holdings over the past week to various exchanges, signaling a possible sell-off.
Today, the Arkham Intelligence dashboard shows the German entity first transferred 200 Bitcoin to Coinbase and Kraken, respectively, for a total of $24.34 million. Later, there was another significant transfer of 500 Bitcoin to 139PoPE1bKQam8QJjhVjYDP47f3VH7ybVu, which happens to be another Coinbase wallet.
The total Bitcoin sent by the German government at press time stands at 900 Bitcoin, worth a whopping $54.76 million.
Arkham Intelligence also noticed that various internal transactions among the different branches of the government showed high levels of activity. Despite the several transactions, the German government’s BKA wallet holds approximately 46.35k BTC worth over $2.83 billion. Just last week, the German government started its large-scale Bitcoin dump after transferring over $196.06 million worth of Bitcoin to Coinbase, Kraken, and Bitstamp.
Impact on Bitcoin
Among the various aspects that can impact the price of Bitcoin, selling pressure from whales tops the list. With the German government holding a significant Bitcoin portfolio, the community is keeping a close watch on the situation, waiting for BTC to rally again.
Yes, the recent activities of the German government raise concerns of a sell-off, but other institutions consider the consolidation in Bitcoin’s price a buying opportunity. Microstrategy’s recent announcement to add more Bitcoin to its portfolio is one such instance.
The uncertainty in the market due to the Mt. Gox settlement and the high ETF outflows is a cause for concern. However, the bulls’ viewing of this as a buying opportunity shows the commitment of the investors who believe in Bitcoin’s immense potential. A KPMG study in April also suggested that German investors invested in Bitcoin before the Bitcoin Halving event, showcasing the population’s growing interest in crypto.
The selling pressure from the German government, combined with market uncertainty, contributes to the current bearish sentiment in the Bitcoin price chart. However, many traders and institutions strongly suggest that Bitcoin will bounce back soon, possibly reaching the elusive $100k mark by the end of 2024.
Also Read: Mt. Gox to Begin Bitcoin & $BCH Rehabilitation Payments in July