Bitcoin

The German government has continued its Bitcoin sell-off after sending roughly 3,100 BTC worth around $178 million in the span of an hour on July 9.
At the same time, the government also withdrew roughly 1,700 Bitcoin&nbsp;(<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) worth around $91.78 million from Bitstamp, recouping BTC holdings from the exchange.
At the time of writing, the German government has also <a href="https://platform.arkhamintelligence.com/explorer/tx/c27c75ff02219665d1053e7f3384cded29901484add2f28c21a50679f92d6b91" target="_blank" rel="noopener nofollow">shifted</a> a further 3,107 BTC out of its main holdings, likely preparing for a further imminent sell-off.
The main government address currently holds around 26,000 BTC worth $1.5 billion, while the address used to off-load holdings currently holds 4,800 BTC worth $276.61 million.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/7facb721-3ce8-4e8f-afe3-313f5b656dae.png" alt="German gov’t prepares for next $276M BTC sell-off" title="">
 <figcaption style="text-align: center;">
 Arkham Intelligence transactional data on the tracked address for the German government. Source: Arkham Intelligence
 </figcaption>
</figure>
Related:&nbsp;<a href="https://cointelegraph.com/news/what-happened-in-crypto-on-the-weekend">Weekend Wrap: Germany moves $80M more BTC, Vitalik donates 100 ETH and more</a>
<h2 data-ct-non-breakable="true" id="german-government-sell-off-continues">German government sell-off continues</h2>
Since 7:30 am UTC on July 9, there has been a total outflow of 3,100 BTC, of which 2,500 were sent to an <a href="https://platform.arkhamintelligence.com/explorer/address/139PoPE1bKQam8QJjhVjYDP47f3VH7ybVu" target="_blank" rel="noopener nofollow">unknown</a> B2C2 Group, 400 BTC to centralized exchange <a href="https://platform.arkhamintelligence.com/explorer/tx/cb9e1bcf8f5c50c4bb8ed28d7c01bb95cf60fd6bb57d291fc1df4beb67942aad" target="_blank" rel="noopener nofollow">Kraken</a>, and the remaining 200 to an unknown <a href="https://platform.arkhamintelligence.com/explorer/tx/e452b43e7525025bf660fb159f039dc678c1b269a5de5918ddb8040f97814ce7" target="_blank" rel="noopener nofollow">wallet</a>.
The German government <a href="https://cointelegraph.com/news/german-govt-transfers-another-900-million-bitcoin-btc-selling-pressure">sold a further $900 million worth of BTC</a> on July 8, suggesting plans to continue steadily selling off its remaining $1.5 billion in Bitcoin holdings.
That same 16,309 BTC sold is now worth over $930 million despite the mass sell-off, suggesting that buyers are still confident about buying BTC in this price range.
Related:&nbsp;<a href="https://cointelegraph.com/news/german-govt-shifts-3k-btc-one-hour">German gov’t shifts additional 3K BTC in 1 hour</a>
<h2 data-ct-non-breakable="true" id="economic-policy-impact">Economic policy impact</h2>
Wall Street traders expect a 72% chance of the US Federal Reserve cutting interest rates in September, so the lower interest rate could help boost investment in BTC.
This macroeconomic trend tends to have a marked impact on assets like BTC because it is still seen as a risk-on asset, unlike assets like gold, which liquidity flows into during geopolitical instability.
Coinciding with the BTC sell-off, the reduction in BTC miner activity in operations and reserve sell-offs suggests that the market sentiment might be nearing its bottom.
<a href="https://cointelegraph.com/news/bitcoin-local-bottom-bitfinex-mt-gox">According to Bitfinex analysts</a>, July 6 and 7 market data evidenced this local bottom despite Mt. Gox <a href="https://cointelegraph.com/news/mt-gox-repayments-bitcoin-bitcoin-cash">starting its BTC and Bitcoin Cash (BCH) repayments</a>.
Related: <a href="https://cointelegraph.com/news/mt-gox-repayments-bitcoin-bitcoin-cash">Mt. Gox begins repayments in Bitcoin and Bitcoin Cash</a>
<h2 data-ct-non-breakable="true" id="btc-could-be-ready-to-rebound">BTC could be ready to rebound</h2>
Despite the BTC sell-offs related to the German government and Mt. Gox repayments to creditors, several indicators <a href="https://cointelegraph.com/news/5-bullish-arguments-bitcoin-price-bottomed-53k">suggest BTC is ready to bounce back</a>.
BTC reached its lowest point since late February, touching $53,550 before reversing to current highs of $57,600.
However, the relative strength index indicator showed a growing divergence between the fall in price and the rise in RSI value, suggesting weakening sell pressure.
Magazine: <a href="https://cointelegraph.com/magazine/raider-investors-daos-nouns-aragon/">‘Raider’ investors are looting DAOs — Nouns and Aragon share lessons learned</a>

German gov’t prepares for next $276M BTC sell-off

Table of Contents

Cointelegraph

Other articles published on Jul 9, 2024

Scam Watcher Sends Urgent Warning To Shiba Inu Community

Biden could still flip the crypto script on Trump – But does he want it bad enough?

Former Gensler Aide Might Lobby for Crypto Firms

BTC Influences Altcoin Market Volatility

Ripple News: Despite Mt. Gox Scare, XRP Sees Strong Institutional Interest

Moonbag Referral Program Leaves Notcoin And Sandbox Speechless In The Crypto Debate!

Join our free newsletter for daily crypto updates!