Germany Sells Off Final Bitcoin Reserves From Initial $3B Worth of Holdings

Germany Sells Last of Its Initial $3 Billion Bitcoin Reserves

The German government completed the sale of its remaining Bitcoin holdings on July 12. According to Arkham Intelligence, the final transaction involved 3,846 Bitcoins worth approximately $62,604 per Bitcoin and was sent to “Flow Traders and 139Po,” which are likely entities for institutional deposit/OTC services.

The majority of the 50,000 Bitcoins sold by the German government in the last three weeks were asset seizures. The sale marked the culmination of weeks of escalating selling activity by the German government, which has seen the government offload tens of thousands of Bitcoins in multiple tranches. This significant liquidation was a key factor in Bitcoin’s sell-off to a low of $54,000 on July 5.

Despite Germany exiting Bitcoin assets, market pressures continue to mount due to the impending $9 billion Mt. Gox repayment plan. The Mt. Gox exchange, which crashed in 2014 when Bitcoin was still in the hundreds of dollars, has long been a source of market anxiety. The repayment plan aims to reimburse creditors and add significant selling pressure to the market in the coming weeks. However, it is difficult to predict the impact of the Mt. Gox repayment on markets due to a variety of factors.

Amid increasing selling pressure, institutional investors have jumped on the opportunity to buy the dip. Data from CoinShares showed that U.S. exchange-traded funds (ETFs) saw inflows of $295 million in the week of July 8, reversing a trend of subdued inflows into these mutual funds. This activity suggests that institutional investors continue to have confidence in Bitcoin’s long-term prospects.