Germany Almost Done Selling Bitcoin, Holding Less Than 5K Tokens After Latest Moves

According to Arkham Intelligence’s blockchain analysis, German authorities transferred a total of 10,567 Bitcoin, equivalent to over $600 million, in several transactions to crypto exchanges Bitstamp, Coinbase, Kraken, and other service providers like Flow Traders and Cumberland DRW.

At the present rate of sale, Germany may exhaust its Bitcoin supply as early as this week or the beginning of the next, based on the estimated 35,000 Bitcoins they have sold from their wallets so far this week.

The total amount could shift in the late hours due to an unusual procedure followed by wallets, where they occasionally get back a significant portion of transferred assets, worth up to $10 million, from exchanges and brokers before the day concludes. According to Greg Cipolaro, the research head at digital asset manager NYDIG, this on-chain activity is puzzling.

As a researcher studying the cryptocurrency market, I’ve noticed that there has been significant concern among investors regarding Germany’s impending $3 billion sale. This anxiety stems from the close attention paid to the on-chain activities of large potential sellers, whose movements have dominated discussions in recent weeks. The resulting downturn in asset prices is often attributed to these sellers, fueling fears of a supply glut. However, with the finish line in sight for Germany’s sale, this source of uncertainty may soon be alleviated.

In a recent report, NYDIG’s Cipolaro expressed that concerns regarding imminent sell-offs may have been exaggerated. The decrease in Bitcoin’s value surpassed the anticipated effect on the market if all the potential selling actually occurred.