German Government Sells Remaining Bitcoin Reserves, Influences Market

  • The German government sold its last Bitcoin holdings on July 12, totaling 3,846 BTC.
  • The sell-off of 50,000 BTC by Germany kept the market below $60,000.
  • U.S. ETFs saw $295 million in inflows during the week of July 8, reversing suppressed inflows.

The German government officially has no Bitcoin left after offloading its reserves, keeping the cryptocurrency’s price below $60,000. On July 12, data from Arkham Intelligence confirmed that Germany had sold its last Bitcoin holdings.

The final transaction included 3,846 Bitcoin, sent to “Flow Traders and 139Po,” which Arkham described as likely institutional deposit/OTC service. This transaction came after weeks of increased selling pressure from the German government, which sold tens of thousands of Bitcoin in several batches.

Most of the 50,000 Bitcoin sold by the German government over the past three weeks were seized assets. This significant sell-off has played a crucial role in keeping the market below the $60,000 price point and its 200-day exponential moving average.

Despite the German government depleting its Bitcoin reserves, the upcoming $9 billion Mt. Gox reimbursement plan might continue to suppress Bitcoin’s price. This situation has contributed to the climate of fear, uncertainty, and doubt that has affected the market in recent months.

Analyst Jacob King believes investors seeking quick profits could sell up to 99% of Mt. Gox’s $8.2 billion. The Mt. Gox exchange collapsed in 2014 when Bitcoin was trading for hundreds of dollars. Conversely, IG Markets analyst Tony Sycamore thinks the Mt. Gox payments will not have the severe impact on markets that many investors expect. 

Sycamore noted that various factors could influence the behavior of Mt. Gox creditors. He predicted that half of the reimbursement supply might hit exchanges sometime this July.

Despite concerns, Sycamore is confident that the reimbursement was already factored into the Bitcoin market. He mentioned that investors had been aware of the reimbursement plan for a long time, so it should not be a surprise. 

Institutional investors seized advantage from the reduced prices during the period of increased selling pressure. Data from Coin Shares showed that U.S. exchange-traded funds (ETFs) earned $295 million in inflows for the week of July 8, therefore reversing many weeks of subdued inflows into investment funds.

The latest activities of the German government have had a major impact on the Bitcoin market, with the sell-off of seized assets and the upcoming Mt. Gox reimbursement plan continuing to create uncertainty. 

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