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German Government Sends 2,000 Bitcoin to Exchanges Again as Balance Declines
In a significant move, the German government moved more than 2,000 Bitcoins to exchanges and trading desks in the space of 24 hours.
Large-scale movements have reduced Germany’s Bitcoin reserves from 9,094 to around 6,894 BTC, according to data from blockchain analytics firm Arkham Intelligence.
As of July 12, 2024, the German government (BKA) held approximately 6,894 Bitcoin, worth $394.97 million, based on the current price of $57,290 per Bitcoin.
The transfers began on July 11, with the government moving a total of 5,000 BTC to various cryptocurrencies stock exchanges and market makers since late last night.
Recipients of these transfers include major exchanges like Coinbase, Kraken, and Bitstamp, as well as trading firms like Flow Traders and a wallet Arkham linked to institutional liquidity provider B2C2 Group.
In a subsequent move, on July 12 at 15:02 UTC+8, the government continued its transfer activity.
He transferred 1,200 BTC, equally distributed between Bitstamp, Kraken and Coinbase (400 BTC each).
Additionally, 1,000 BTC was moved to an address suspected of belonging to the B2C2 group, while 500 BTC was sent to an unmarked address.
Interestingly, in two separate transfers early Friday morning, 4,169 BTC were received back from Coinbase, Kraken, and Bitstamp. This could have been due to a failed sell transaction, but it’s hard to tell from the onchain data.
Simply moving Bitcoin from government wallets to an exchange does not necessarily mean that the funds have been sold.
These moves, however, significantly reduced the German government’s Bitcoin holdings. Before these transactions, the government held 9,094 BTC.
Meanwhile, in a research note on Friday, 10x Research said that selling pressure from the German government is easing and that Bitcoin appears technically oversold.
According to the report, ETFs are buying up falling shares and the Fed is expected to cut interest rates soon, providing the liquidity support that many have been anticipating.
“If the Fed cuts rates solely due to inflation concerns in September 2024, it could be bullish in the short term for Bitcoin. However, if growth concerns drive the cut, in September or later, Bitcoin could face significant selling pressure,” the report said.
By Stacy Elliott.