As reported by cryptocurrency analytics firm Arkham, the German government is nearing the conclusion of its initiative to liquidate its Bitcoin holdings. Recently, approximately $286 million worth of Bitcoin was transferred to major exchanges such as Kraken and Coinbase. This move marks a significant step towards the government’s goal of divesting its entire Bitcoin fortune.
The Bitcoin in question was originally confiscated from operators associated with the infamous Movie2k piracy website earlier in 2024. At present, the German state of Saxony retains only a small fraction of the initial amount seized.
Analysts, including Blockstream CEO Adam Back, anticipate that the German government’s remaining Bitcoin assets may be completely sold off by the end of this week. This anticipated conclusion to the selling spree could potentially alleviate some of the bearish pressures that have plagued the cryptocurrency market in recent months.
Since early June, the German government has been actively transferring substantial amounts of Bitcoin to various trading platforms. These transactions have been identified as one of the contributing factors to the heightened selling pressure observed across the market during this period.
Despite the large-scale sell-offs, market resilience has been notable. Prominent trader Josh Olszewicz commented that recent rounds of selling by the German government were absorbed efficiently, likening the market’s response to a “dry sponge.” This resilience was further supported by significant inflows into Bitcoin exchange-traded funds (ETFs) this week, totaling $147 million on Wednesday alone. This influx suggests that ETF investors viewed the market dip as an opportunity to increase their Bitcoin holdings.
Juan Leon, senior investment strategist at Bitwise Invest, highlighted the rapid growth of Bitcoin ETFs, describing them as the fastest-growing category of ETFs in history. He noted that since their launch in January, Bitcoin ETFs have accumulated nearly double the amount of new Bitcoin issued up to June 30.
