The German government has resumed selling their Bitcoin stash, causing ripples in the crypto market. It has already offloaded most of its 50,000 BTC haul.
Now, only 5,800 BTC remain in their wallet. This selloff is turning heads and raising questions.
Government Sends $3,200 BTC to Top Exchanges.
On July 12, the government made several big moves. Firstly, the government sent 3,200 BTC to different places.
Notably, Coinbase, Kraken, and Bitstamp each got 400 BTC. Additionally, two mystery addresses received 1,000 and 500 BTC, respectively.
Source: X Post
These transfers showed the government’s careful approach to selling.
However, crypto expert Michaël van de Poppe thinks the government could sell the remaining BTC coins soon.
The analyst estimates about $300 million worth of Bitcoin is left.
Usually, this type of transaction affects the price of an asset.
However, the government is spreading it out to avoid crashing the market. This strategy helps prevent sudden price drops.
German Bitcoin Selloff Impact on the Market
The German selloff has affected Bitcoin’s price and the entire crypto market. Moreover, some top government officials aren’t happy about the actions.
Bitcoin supporter and German lawmaker Joana Cotar thinks they should have kept the Bitcoin.
Source: X Post
“[I] urge you to refrain from a hasty disposal of state-owned Bitcoin,” she wrote.
She believes it could have been a “strategic reserve currency” instead.
Also, Cotar stated: “Instead of divesting, I recommend developing a comprehensive Bitcoin strategy. This could include keeping Bitcoin in the state treasury, issuing Bitcoin bonds, or creating a conducive regulatory environment.”
Meanwhile, the government’s original 50,000 BTC came from a seized piracy website.
They’ve been selling since June 19. Now, they’ve sold 88.4% of the stash.
As a result, this big sale is making waves in the crypto community.
But it’s not the only factor affecting the market.
Also, Mt. Gox’s plans to release lots of Bitcoin are causing stress too. These issues are pushing Bitcoin’s value down.
Looking Ahead
As the selloff continues, people are watching closely.
As of 10:44 a.m. Eastern Time, BTC trades at $57,922 with a volume of over $25.2 billion.
According to CoinMarketCap, the coin increased by 1% in the past day.
The careful selling approach might help avoid a market crash. But the long-term effects are still unclear.
As the last of Germany’s Bitcoin sells, everyone’s wondering what will happen next.