The German government’s weeks-long spree of selling its Bitcoin holdings continues, with another 1,000 BTC transferred on July 8th, 2024. This follows previous transfers totaling over 3,000 BTC in the past two weeks.
Transactions and Remaining Holdings
Data from blockchain analytics firm Arkham Intelligence shows 250 BTC each being sent to major cryptocurrency exchanges Bitstamp and Coinbase. An additional 500 (BTC) were transferred to an unlabeled address, which could potentially be another exchange or an over-the-counter (OTC) service. These transactions, valued at nearly $28 million at current prices, leave the German government with approximately 38,826 BTC remaining in its known wallets, valued at roughly $2.17 billion.
Criticism of the Selling Strategy
The government’s decision to sell its Bitcoin holdings has drawn criticism from some within Germany. Joana Cotar, a member of the German parliament (Bundestag) and a vocal Bitcoin advocate, criticized the approach as “hasty” and lacking a long-term strategy. Cotar argued that Germany should be considering holding Bitcoin as a strategic reserve asset, similar to discussions happening in the United States.
Also Read: Ethereum Scarcity Alert: Exchange Balances Dive 50% Below Bitcoin
Market Impact
The ongoing coin sales by the German government coincide with a general decline in the cryptocurrency’s price in recent weeks. The price of coin is currently down 3.34% on the day, according to The Block’s Bitcoin Price Page. Whether the German government’s actions are a contributing factor to the price drop remains to be seen.
Uncertainties Remain
The purpose behind the German government’s decision to sell its coin holdings and the ultimate destination of the unlabeled transfer remain unclear. The market awaits further developments as Germany continues its significant Bitcoin transactions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
