The German government which has been a source of serious concern for the crypto industry due to its on-chain activity is currently left with $582 million worth of Bitcoin after shedding over 80% of its Bitcoin assets.
The German government for the past few weeks has been seriously selling large cache of Bitcoin assets heaping more selling pressure on Bitcoin and leading to the primary asset losing over 20% of its value in the last month.
The selling spree by the German government has tanked the markets and made the headlines in the industry as experts speculate on the effect of whales on the price value of assets.
German Government dumping Bitcoin
For the past few weeks, a wallet linked to the German Federal Criminal Police Office, commonly known as the Bundeskriminalamt (BKA) has been selling off large amounts of Bitcoin which it seized from a top movie piracy site in Germany.
The German authorities seized 50,000 BTC from Movie 2k a movie piracy website in January which was worth about $2.2 billion at the time of its seizure.
The BKA sold about 900 BTC in June which was valued at about $52 million at the time. The authorities followed that up by selling another 3,000 BTC worth approximately $172 million.
This week the German-linked wallet sold 2,739 BTC, equivalent to $155 million.
On Wednesday the German government sold about 5,000 BTC leaving behind about 15,552 BTC in its stash worth about $892 million.
At the time of writing this report, Arkham intelligence data shows that the German government is now left with $582 million worth of BTC after making some sales today too.
This means that the German government has shed over 80% of the bitcoin asset seized from Movie 2k.
Bitcoin Price still above 6-month support
The primary crypto asset bitcoin has faced a lot of selling pressure recently forcing it to shed some of its value. However, the price for the asset remains above the critical $50,000 six-month support level. This slight resilience by Bitcoin is driven by the activities of other key players in the industry.
Blackrock, one of the largest financial institutions in the world which also operates the biggest Bitcoin Exchange Traded Funds has been buying the crypto asset and increasing its holding of the asset. This has gone a long way in stabilizing the price of Bitcoin and cushioning the effect of the sell-offs by the German government.
According to data from Farside UK, Blackrock’s IBIT recorded an inflow of $121 million on the 10th of July and $22 million as of today. The firm now has a total BTC asset holding of over 312,565 BTC worth over $18 billion.
Several Bitcoin ETFs pulled in a total of $147.4 million in institutional investments yesterday signaling a sustained demand for the asset despite the activities of the German government.
What to Know
- According to Coingecko, Bitcoin is currently selling for $58,000 at the time of this report with a 2.0% increase in the last 24 hours and a 2.4% increase in the last 7 days.
- Bitcoin is still quite a mile from its all-time high of $73,700 it hit in March this year.
