As we at Kriptokoin.com have reported, the German government has been rapidly divesting its Bitcoin holdings since the beginning of July. On Thursday, July 11, it sold an additional $376 million worth of Bitcoin, bringing its total holdings below 10,000 BTC. Despite this wave of selling, the BTC price remains stable around $57,000. This movement has become a matter of great curiosity among market analysts and investors.
Massive Bitcoin Sell-Off in the Last One Month
Over the past month, the German government has disposed of 82 percent of its Bitcoin holdings. First, they sold 10,627 BTC at a price of $57,976, generating $616 million in revenue. Immediately after this massive sale, the government bought back 4,169 BTC at a price of about $57,469, according to Arkham Intelligence data. The reason for this buyback is still unclear and has led to various speculations among market participants. The 9,094 Bitcoins currently held by the government have a total value of around $520 million and are expected to be sold shortly.
The German government, which has been selling heavily in the last three days, will sell all its assets in a day or two if it continues at this pace. However, no official explanation has been given as to why the sales have been accelerated so much. The motivation behind this strategic move by the government is still unclear.
Bitcoin Price Volatility Decreases
Interestingly, despite the German government’s massive Bitcoin sales, the BTC price did not experience any major fluctuations and remained stable at around $57,000. Although the Bitcoin price fell as low as $53,500 earlier this week, it quickly recovered to reach $58,000. Strong inflows into spot Bitcoin ETFs helped offset government selling pressure. However, despite lower-than-expected June CPI data from the US, Bitcoin bulls failed to initiate a strong upward move and BTC price fell 1.4% to below $57,000 as of press time.
This steady price action suggests that the market is strong enough to absorb such large sell-offs, according to some analysts. However, it remains to be seen how the market will react if the remaining 9,094 BTC held by the German government are also sold.
Future Prospects and Macroeconomic Indicators
The reasons behind the German government’s Bitcoin sales are still unclear. The rapid continuation of the sales has led to some speculation among investors. There has been no official statement about the reason behind the government’s move. However, on-chain data provider Santiment stated that it was a “news selling” move. In this case, investors should carefully monitor the market reaction and focus on macro indicators.
The fact that the price of Bitcoin has remained relatively stable suggests to some analysts that the market is strong enough to absorb such large sell-offs. However, it remains to be seen how the market will react if the remaining 9,094 BTC held by the German government is also sold. The path of the Bitcoin price in the coming days will depend on the government’s sell-off and macroeconomic indicators. It will be a period to watch carefully to see the effects of Germany’s sales strategy on the market.
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