German Govt. Now Only Has 9,094 Bitcoins To Sell; Is the Bottom in?

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As a researcher with experience in the cryptocurrency market, I find the recent actions of the German government regarding Bitcoin intriguing. Their decision to sell off a significant portion of their Bitcoin holdings within a month has led to a substantial reduction in their total holdings. According to the available data, they have now sold 82% of their initial Bitcoin holdings, leaving them with only around $520 million worth of Bitcoins.

On the evening of July 11, the German government continued to sell off its bitcoins, disposing of an additional $376 million worth, leaving them with a remaining stash under 10,000 BTC.

German Govt. Offloads 82% of Bitcoin Holdings In A Month

As a researcher studying Bitcoin transactions, I observed that the German government sold off 10,627 Bitcoins, equivalent to approximately $616 million, on Thursday at an average price of around $57,976 per Bitcoin. Later in the day, according to Arkham Intelligence data, they bought back 4,169 Bitcoins valued at about $241 million, with each Bitcoin costing them around $57,469 on average.

As an analyst, I can tell you that after the recent sale, the German government is left with approximately 9,094 Bitcoins remaining to sell, currently worth around $520 million. Over the past month, we’ve observed that the German government has disposed of about 82% of its Bitcoin holdings by selling nearly 41,000 coins in the open market.

For the past three days, the German government has been unloading large amounts of assets. At their present rate of sale, they could exhaust all their holdings within a day or two.

As an analyst, I’ve been closely monitoring the recent rapid sale of Bitcoin by the German government without receiving any clear explanation from official sources yet. It remains unclear to me why they are choosing to sell off their Bitcoins so aggressively and at what seems like inconvenient times in the market, only to buy back partial amounts later on.

As a researcher observing the Bitcoin market, I’ve noticed that the price has held fairly consistent around the $57,000 mark over the past two days.

Is the Bitcoin Bottom Already In?

Bitcoin experienced a significant decline to $53,500 earlier in the week, but has since bounced back and is now trading at around $58,000. Despite the German government offloading some of their holdings this week, investments into Bitcoin spot ETFs have continued to pour in, helping to mitigate selling pressure.

As an analyst, I’ve noticed that while the German government’s BTC movement hasn’t significantly influenced Bitcoin’s price, the market’s attention has now turned to macroeconomic indicators. Recently, the US Consumer Price Index (CPI) for June came in below expectations. Despite this unexpected data, Bitcoin bulls have been unable to spark a rally and the cryptocurrency’s price is currently down 1.4%, trading below $57,000. According to on-chain data provider Santiment, there’s a trend of selling the new Bitcoin supply in the market.

As an analyst, I’ve analyzed today’s US CPI report release, which showed a core CPI rise of 3.3%, lower than the anticipated 3.5% increase. This unexpectedly favorable data point may seem bullish for crypto markets initially. However, given that many investors had already predicted a strong report and consequently drove up prices in the days leading up to the release, this situation perfectly fits the description of a ‘buy the rumor, sell the news’ event. In simpler terms, some traders bought cryptocurrencies based on the anticipation of good news, but then sold them once the actual news arrived, potentially resulting in profit-taking and price corrections.

— Santiment (@santimentfeed) July 11, 2024

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2024-07-12 08:04