Massive Bitcoin Sell-Off by German Government Triggers Market Tumble

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Bitcoin’s worth is tumbling once again, this time with the German government getting its hands dirty in the name of economic policy. The government of Germany has been on a selling spree of monumental proportions, liquidating millions of dollars worth of Bitcoin. This unprecedented fire-sale has caused the pioneering digital asset, Bitcoin, to crumble under pressure in an already volatile market environment.

Over the past weeks, Germany has been draining its Bitcoin coffers by the thousands, converting its holdings into hundreds of millions of dollars. A front-row report from Arkham Intelligence, a blockchain analytics platform, pins the date of one such sale to June 25. The government suppose ably parted with 900 Bitcoins on that day, collecting around $52 million in exchange. The beneficiaries of this elimination were cryptocurrency exchanges Kraken and Coinbase, receiving 400 Bitcoins, while destination of the remaining currency remains shrouded in mystery.

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This was followed by another transaction the next week, wherein the German government offloaded an impressive 3,000 Bitcoins from its reserves. This considerable sum is valued roughly at a staggering $172 million. Majority of these sales were conducted with established exchanges such as Kraken, Bitstamp, and Coinbase receiving a hefty 1,300 Bitcoins. The remainder found its way to an unidentified wallet address, remaining aloof to observers.

The most recent known transaction by the government occurred on June 8. German law enforcement turned over an additional 2,738.7 Bitcoins valued around $155.3 million. Arkham Intelligence provides insights into where these Bitcoins may have ended up, including high probability candidates like Kraken, Cumberland, 139Po, and an address labeled bc1qu.

Despite these heavy offloads, the German government’s coffers are far from bankrupt. As per Arkham’s data, the government still has a comfortable 26,053 Bitcoins nestling in its reserves, which—but behold!—estimates a whopping $1.49 billion value.

However, the shadows of discontent are brooding among the political elite. Joanna Cotar, a member of the German Bundestag, Germany’s federal legislative body, expressed her disapproval of the government’s decision to liquidate its Bitcoin possessions. She states that the government should be inclined towards strategic retention of Bitcoins, likening them to a reserve currency, instead of thoughtless selling.

Bitcoin, having withstood the brunt of the German government’s formidable selling onslaught coupled with the not-so-favorable market conditions, has faced a significant depreciation in its value. Despite the small uptick due to inflows into Spot Bitcoin ETFs, Bitcoin’s price had remained tumultuous, finding it challenging to breach the $60,000 mark.

Ali Martinez, a crypto analyst, also highlighted that over 30,000 Bitcoins, worth around $1.8 billion, had been sold by high-net-worth individuals frequently dubbed as Bitcoin ‘whales’. This sell-off has outstripped the German government’s Bitcoin holdings and driven the price down further to $57,039, as per CoinMarketCap’s latest records.