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Germany Sill Holds $2.2B Worth of Bitcoin, Blockchain Data Show

Jul 7, 2024
    Germany still holds 29,286 BTC worth $2.2 billion, according to Arkham Intelligence.The potential selling pressure equates to 9% of bitcoin‘s 24-hour trading volume.Germany has been running down its coin stash since mid-June.
As a long-term crypto investor with experience in the market, I find Germany’s recent bitcoin sales concerning. With 39,826 BTC worth $2.2 billion, representing nearly 9% of BTC’s daily trading volume, it’s no secret that these sales put significant downward pressure on the cryptocurrency’s price.Recent developments in the crypto market, including Germany’s Bitcoin (BTC) transactions and Mt. Gox’s compensation payouts, have caused significant turbulence and the situation may still be unfolding.

The largest economy in the Eurozone continues to possess approximately 39,826 Bitcoin, equating to around $2.2 billion, based on information monitored by Arkham Intelligence. This substantial hoard, which could trigger selling, accounts for almost 9% of Bitcoin’s daily trading volume of $25.3 billion. Consequently, the market may experience additional volatility.

Around the beginning of this year, the German Federal Criminal Police Office (BKA) confiscated approximately 49,857 Bitcoins from the administrators of Movie2k.to, a now-defunct privacy website that was last operational in 2013. Since mid-June, the authorities have sold over 10,000 BTC on the open market, resulting in a decreasing value for Bitcoin.
As an analyst, I’ve observed that BTC‘s value has taken a significant hit over the past month, with its spot price dipping by approximately 19%, or around $15,000, to settle at $55,490 as per CoinDesk’s latest data. Moreover, within just the last week, BTC prices have seen a notable decrease of almost 13%. On the other hand, the broader market gauge represented by the CoinDesk 20 Index (CD20) has also experienced a downturn, with a weekly decline of nearly 14%, translating to approximately 267 points less.

Last week, Justin Sun, the creator of Tron, proposed a private transaction to buy bitcoin directly from the German government, aiming to mitigate any downward pressure on the market price.

According to certain analysts, Germany’s significant Bitcoin sales could be considered a tactical error, potentially placing the country at a diplomatic or political disadvantage on the global stage.

Inevitably, the German Government has shifted over $390 million in Bitcoin value to cryptocurrency exchanges during the recent weeks with an intent to sell for traditional currencies. However, from a geostrategic standpoint, it represents a significant misstep for any sovereign entity to liquidate their Bitcoin holdings for fiat currency as they possess the unique ability to generate the latter at will.

In contrast, getting your hands on bitcoin is a more complex process due to the substantial energy requirement for mining it and the finite number of coins, which total only 21 million.

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2024-07-08 09:09