German Government Dumps Another $900 Million Worth of Bitcoin, Sparking Fears of Increased Selling Pressure on BTC Prices

On-chain data from Arkham Intelligence shows that the German government transferred about 16,309 Bitcoin in multiple transactions on July 8.

A cryptocurrency wallet labeled “German Government (BKA)” has sold another $900 million worth of Bitcoin, sparking fears of increased selling pressure on BTC prices.

On July 8, the German government transferred about 16,309 Bitcoin in multiple transactions, marking the largest single-day Bitcoin liquidation by the government. Of the total amount, 3,500 BTC was sent to Flow Traders, 200 BTC to Kraken, 400 BTC to Bitstamp, and 400 BTC to Coinbase.

The transfers to major exchanges like Bitstamp, Coinbase, and Kraken, along with market makers Flow Traders and Cumberland DRW, indicate a significant market impact.

Following the large transfers, Bitcoin’s price dropped sharply during the European trading session, falling as much as 6.75% from a high of $58,200 to a low of $54,278. The last group of blockchain transactions contributed to this drop, totaling 8,700 BTC.

Arkham data shows that the German government’s holdings have now reduced to 23,788 BTC, worth $1.3 billion, from an initial 50,000 BTC since it started offloading the digital asset in June. The latest transfers suggest the German government is more than halfway through its selling spree.

The drop in Bitcoin price triggered massive liquidations across the crypto market. Data from CoinGlass reveals a total of $425 million in leveraged positions were liquidated, with $216 million being long liquidations.

Over the last 24 hours, more than $189 million in Bitcoin positions were liquidated. Of these, $81 million were long BTC positions, while $107.97 million were short BTC liquidations.

Bitcoin has strong support at the $54,700 mark, but a move below this level could liquidate about $750 million in cumulative leveraged long positions across all exchanges.

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