German Government Transfers $900 Million in Bitcoin, Adding to Selling Pressure

Repeated Bitcoin transfers to centralized exchanges suggest the German government plans to sell the remaining $1.3 billion in BTC holdings.

Details of the Transfer

• A “German Government (BKA)” labeled cryptocurrency wallet has sold another $900 million worth of Bitcoin.
• The wallet transferred roughly 16,309 Bitcoin in multiple transactions to various external addresses on July 8.
• Some transfers were made to crypto exchanges Bitstamp, Coinbase, and Kraken, as well as market makers Flow Traders and Cumberland DRW.

Another 700 BTC was sent to an unknown wallet “139Po,” which has received previous funds from the German government. Following these transfers, the Bitcoin price dropped sharply during the European trading session.

Market Impact and Mt. Gox Repayments

• With the latest transfers, the German government has reduced its holdings to 23,788 BTC, worth $1.3 billion, from 50,000 BTC since June.
• The drop in Bitcoin price triggered liquidations across the crypto market totaling $425 million, with $216 million as long liquidations.
• Mt. Gox repayments have begun, with $9 billion in Bitcoin and Bitcoin Cash to be repaid to creditors.
• Bitstamp aims to distribute its portion of Bitcoin repayments to Mt. Gox creditors swiftly, potentially adding more selling pressure.

Market participants expect Bitcoin prices to climb again once the near-term selling pressure from Mt. Gox repayments and German government selling cools off. At the time of publication, Bitcoin was trading at $56,433, down 1.52% over the last 24 hours.

Please note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.