New record! Germany transferred 16,309 Bitcoins worth approximately US$900 million in a single day

This site (120BTC.coM): The German government-related wallet has been conducting multiple large-amount Bitcoin transfers since June 19, and has frequently transferred them to multiple cryptocurrency exchanges such as Coinbase, Kraken and Bitstamp... for sale. It is believed that This is one of the main reasons for Bitcoin’s continued weakness.

According to Lookonchain statistics, in the past 24 hours, the German government once again transferred a total of 16,309 Bitcoins held in batches to cryptocurrency exchanges and market makers such as Bitstamp, Coinbase, Kraken, Flow Traders, Cumberland, DRW... address, worth US$915 million, which may be one of the main reasons why Bitcoin plunged from US$58,000 to below US$55,000 last night.

Received BTC refund from exchange?

However, it is worth noting that the German government wallet address subsequently received 3,673 Bitcoins returned from exchanges, approximately US$206 million, mainly from Coinbase, Kraken and Bitstamp.

The Block Research Director Steven Zheng said that the exchange was likely returning the Bitcoin to the German government because it was unable to sell the Bitcoin within the target price range:

Considering that some Bitcoin was sent back to the German government from Coinbase Addresses, it can be assumed that these are unsold Bitcoins that are part of a sales agreement between the cryptocurrency exchange and the country.

Source: Arkham

This means that the German government sold approximately 12,366 Bitcoins in a single day, worth approximately US$708 million.

Arkham data shows that the number of Bitcoins held by the German government has dropped from more than 50,000 last month to the current 27,461, worth approximately US$1.55 billion, which means that the German government has sold nearly half of the seized Bitcoins. , it is still possible to continue to be transferred to the exchange, which deserves investors' attention.

Source: Arkham

Bitfinex is bearish on the impact of government selling

However, regarding the German government’s massive selling, Bitfinex analysts believe that the decline is just normal seasonal weakness.

Bitfinex pointed out that since 2023, the actual market value of Bitcoin (that is, the value of Bitcoin buying and selling) has flowed into the market as high as 224 billion U.S. dollars. In comparison, the Bitcoin seized and subsequently sold by governments such as the United States and Germany is only about $9 billion, only 4% of the total cumulative real value added by the market since the beginning of 2023:

Despite the huge nominal value, the actual amount of Bitcoin transferred to exchanges is only a few hundred million dollars, which shows that the impact of government seizures on the market The actual impact of oversupply is relatively small.

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