The German Government Has Run Out Of Bitcoin

Germany’s on-chain Bitcoin wallet balance has officially hit zero, according to Arkham Intelligence, meaning selling pressure from the European economic powerhouse is likely at or near its end.

The recent wallet outflows put an end to the bearish narrative that has been plaguing the crypto market for weeks, at a time when on-chain indicators point to a local bottom approaching.

Latest Bitcoin Sale in Germany

As of late Thursday, Arkham He said The government has only 4,925 bitcoins ($282.45 million) left in its wallets. That’s down from the 50,000 bitcoins the state held as of June 19, which were officially seized from movie piracy site Movie2kin in January.

Early Friday, the government recovered 4,169 BTC from exchanges including Kraken, Coinbase, and Bitstamp, before sending 2,700 BTC back to those platforms by 5:00 a.m. ET.

By 10 a.m., the state had sent another 2,300 bitcoins to Kraken, an unspecified address, and likely an institutional depository/OTC service. Later, at around 2:35 p.m., the government sent all of its remaining 3,846.05 bitcoins ($223.81 million) to the institutional trading desk and Flow Traders, a private trading firm.

Does this indicate that Bitcoin has bottomed out?

The German sales began at a time when the US government was also selling some of its coins seized from criminals, and concerns were growing in the market about repaying the debts of the bankrupt Bitcoin exchange Mt. Gox.

With little demand from Bitcoin whales and a lack of stablecoin liquidity, the low bullish momentum pushed Bitcoin’s price down to $53,900 last Friday — its biggest drop yet from its March high of $73,700.

Bitcoin investors online are celebrating the government’s sell-off, while also criticizing the state for giving away their coins in exchange for fiat currency.

“Germany dumping its entire stockpile of seized bitcoins could be one of the biggest strategic mistakes in history in the next few decades.” I tweeted Will Clemente, co-founder of Reflexivity Research, on Friday.

Michael Sailor, CEO of MicroStrategy, also gave a speech. hidden stab “Don’t sell your bitcoin,” a government spokesman tweeted Friday, which translates from German as “Don’t sell your bitcoin.”

With the sell-off over, on-chain analysts say the Bitcoin price looks like a healthy entry point for new investors.

Earlier this week, institutional investors piled into Bitcoin at the fastest rate since March, suggesting they were intentionally “buying the dip.” Meanwhile, short-term holders were selling their coins at a collective loss, which analysts say is a good sign that market fear has peaked and the price is on the verge of a correction.