he German government has finally sold off all of its BTC holding that it possessed. After 23 consecutive days of selling the virtual currency, which considerably influenced the market It has come to an end. This move seals a divestiture strategy that began in the last week of June.
Details of the Sale
On the last day of the transfer Germany Sold off approximately 3,846 BTC, equal to about $223. 81 million. Their BTC holdings were sold to OTC service providers. This sale made the German government’s Bitcoin tracker have a zero balance thus implying that they had exited the cryptocurrency market.
Origin of the Bitcoin
The now sold Bitcoin was acquired from the assets of the operators of the now-dormant piracy site Movie2k. However, Germany was not the only government selling their BTC holdings seized, The USA as well was selling some of their BTC holdings seized from criminal transactions, this intensified the selling pressure which is why the markets saw a big dump and a lot of fear around crypto investors.
Market Impact
It is important to note that although there was a lot of selling pressure in the market, we witnessed huge inflows through ETFs specifically, around $801 million Bitcoin inflows occurred in US spot Bitcoin exchange-traded funds (ETFs) during the recent trading sessions. Moreover, according to CryptoQuant analysis, smart money known as whales have been buying bitcoins in large quantities to take advantage of the low prices as a result of the German dumping.
Germany's Bitcoin Halt Impacts Market
The halt on Germany’s Bitcoin sales is a significant event in the progression of cryptocurrencies. Since institutional and private investors at large have now been given the freedom to invest in Bitcoin it remains to be seen how this divestment will affect the market. Akin to any other market, there is a constant interconnection between government policies and actions, and the development in the cryptocurrency market.
