As a researcher with a background in cryptocurrency and economics, I find Germany’s complete sale of its Bitcoin an intriguing development. The country’s wallet balance reaching zero marks the end of sell pressure from this significant player in the market. This news comes at a time when on-chain indicators suggest that a local bottom is near.
According to Arkham Intelligence’s latest report, Germany’s Bitcoin holdings in on-chain wallets have hit zero, indicating that the selling pressure from this significant European economic force may be coming to a close.
Recent withdrawals from the digital wallet have put an end to the prolonged pessimistic trend in the cryptocurrency market, according to some analysts. Meanwhile, on-chart signals suggest that a short-term low may be imminent.
Germany’s Last Bitcoin Sale
Starting from Thursday, Arkham revealed that the government held approximately 4925 Bitcoin ($282.45 million) remaining in their digital wallets. This represents a significant decrease from the 50,000 Bitcoin ($282.45 million) they had as recently as June 19, which were confiscated from the movie piracy site Movie2kin since January.
On Fridays early hours, exchanges like Kraken, Coinbase, and Bitstamp returned a total of 4169 Bitcoin to the government. Before the morning was through, they received another 2700 Bitcoin back from these same platforms by 5:00 am Eastern Time.
Before 10 a.m., the state transferred an additional 2300 Bitcoin (approximately $139 million at the time) to Kraken, which is believed to be an institutional deposit or over-the-counter trading platform. Around 2:35 p.m., they sent all their remaining 3846.05 Bitcoin ($223.81 million) to institutional trading desks and Flow Traders – a well-known proprietary trading firm.
Does This Mark The Bitcoin Bottom?
At the same period, Germany initiated coin sales, coinciding with the U.S. administration selling confiscated coins from criminals, and apprehensions about debt reimbursements to Mt. Gox Bitcoin exchange creditors swirled in the marketplace.
With Bitcoin whales showing little appetite for buying and stablecoins lacking sufficient liquidity, the weakened bullish sentiment caused Bitcoin’s price to plummet to $53,900 last Friday – marking its most significant decline since reaching a peak of $73,700 in March.
Online Bitcoin investors are rejoicing over the government’s finished sale of their Bitcoins, yet they’re voicing criticism towards the authorities for converting their digital coins into traditional money.
“I believe that Germany’s decision to offload their seized bitcoins could be seen as a significant strategic mistake within the next few decades.”
Michael Saylor, the executive chairman of MicroStrategy, subtly criticized the government through a tweet in German on Friday. The tweet read, “You don’t sell your Bitcoins,” which translates to English as “You do not part with your Bitcoins.”
As a crypto investor who closely follows on-chain analysis, I believe that after the recent selloff, Bitcoin’s price presents an attractive entry point for those looking to invest in it for the first time.
This week, institutional investors have been purchasing Bitcoin more rapidly than they have since March, implying they’ve taken advantage of the price drops to boost their holdings. Conversely, short-term investors have been offloading their coins at a loss in large numbers, according to analysts. This behavior is seen as an indicator that market anxiety has reached its peak and that the Bitcoin price may experience a correction soon.
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2024-07-13 02:13