German Government Sells 1300 Bitcoin to Coinbase, Kraken, and Bitstamp

The German government has executed another significant Bitcoin transaction, moving 1,300 Bitcoin to major cryptocurrency exchanges. This action, as reported by Arkham Intelligence, amounted to approximately $76 million. Following this transfer, the price of Bitcoin experienced a rapid drop below $58,000, prompting concerns about a potential further decline.

In this recent liquidation, 500 BTC valued at $29.05 million were sent to Bitstamp, while 400 BTC each, totaling $23.24 million, were transferred to Coinbase and Kraken. Additionally, a substantial amount of 1,700 Bitcoin worth $98.76 million was moved to an undisclosed wallet, raising speculations about potential future sell-offs from this new wallet. This move follows a pattern seen previously, where the German government shifted Bitcoin to new addresses immediately after an exchange dump.

The total Bitcoin offloaded by the German government now stands at nearly 10,000 BTC, with the government currently holding 40,359 BTC valued at $2.32 billion. This continuous liquidation strategy by the German authorities underscores their ongoing efforts to manage and potentially reduce their exposure to the volatile cryptocurrency market, although the exact motive behind these sell-offs remains unclear.

Recent data provided by Arkham Intelligence reveals that on July 2, the government transferred 832 BTC worth $50 million, and an additional 361.877 BTC valued at $22.65 million was sent to market maker Flow Traders on the same day. These strategic movements indicate a systematic approach by the government in divesting its Bitcoin holdings.

Prior to this series of Bitcoin offloading by the German government, which commenced on June 18, the government held 50,000 BTC seized from operators of pirated movie sites in early January 2024. With the recent transactions, the government has reduced its BTC holdings by approximately 20%.

In terms of Bitcoin’s price performance, it has seen a 4.88% decline in the last 24 hours, reaching $57,504.57 at the time of reporting on Thursday, July 4. This drop aligns with the broader trend in the cryptocurrency market, which has experienced a 5.02% decrease. The German government’s sell-off has contributed to the downward pressure on Bitcoin’s price.

During this period, Bitcoin recorded a trading volume of $36.48 billion, marking a 58.71% increase. The price fluctuated between a high of $60,558.36 and a low of $57,338.45. Additionally, Bitcoin’s open interest decreased by 4.25%, reaching $30.39 billion according to Coinglass data.

The German government’s recent Bitcoin liquidation has led to a surge in BTC long liquidations, totaling $78.79 million in the past 24 hours. Short liquidations amounted to $12.71 million, which was insufficient to offset the long positions.