German Government Unloads 80% Of Bitcoin Holdings, Leaving Only $890M Behind
July 11 2024 - 1:00AM
NEWSBTC
In recent weeks, German authorities have stepped up the sale of
significant amounts of Bitcoin (BTC), resulting in increased
selling pressure on the world’s largest cryptocurrency, which has
fallen over 20% in the past month. Bitcoin Reserves On The
Brink Of Exhaustion The selling spree began last month when the
German government initiated the sale of seized Bitcoin from a
wallet operated by the country’s Federal Criminal Police Office,
commonly known as the Bundeskriminalamt (BKA). Related
Reading: Ethereum Whale Sparks Sell-Off Rumors With 11,215 ETH
Coinbase Deposit The BKA sold 900 BTC in June valued at around $52
million at the time, which were part of a massive haul seized from
a now-defunct movie piracy website. Subsequently, the government
sold an additional 3,000 BTC worth approximately $172 million,
followed by another sale of 2,739 BTC, equivalent to $155 million
this week. Adding to these figures, the latest data from blockchain
analytics firm Arkham reveals that the German government’s wallet
sold over 5,000 BTC on Wednesday, leaving just 15,552 BTC in its
stash worth around $892 million, representing a sell-off of more
than 80% of their entire stash of 50,000 BTC seized. Price
Remains Steady As BlackRock Steps In Despite the significant
sell-off, Bitcoin has managed to maintain its price above the
crucial 6-month support level of $50,000, signaling resilience in
the face of the massive selling pressure witnessed in the market
over the past 30 days. Furthermore, the recent pullback from
all-time high levels has been viewed by many investors, including
institutional asset managers, as a buying opportunity, contributing
to the slight recovery in Bitcoin prices over the past few
days. Akrham even stated in a social media post, “The German
government is selling, but Blackrock is buying. Related
Reading: Chainlink Traders Capitulate After 10% Plunge: Bottom
Here? Recent data shows that on Wednesday, the Bitcoin ETF market
activity has seen a net addition of 4,862 BTC valued at $281
million, mitigating the impact of the daily sell-off by the German
authorities. BlackRock for instance, one of the largest ETF
issuer by assets under management, increased its BTC holdings
today by 2,095 BTC (worth $121.16 million), bringing its total
holdings to 312,565 BTC worth $18.08 billion, playing a significant
role in stabilizing and supporting the Bitcoin price. At the
time of writing, the largest cryptocurrency on the market is
trading at $57,430, almost unchanged from Tuesday’s price with a
slight drop of 0.4% in the last 24 hours. Nevertheless, BTC still
records a price drop of over 22% from its all-time high of $73,700
reached in mid-March. Featured image from DALL-E, chart from
TradingView.com
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