German Government Completes Massive Bitcoin Sell-Off
- The German government completed Bitcoin liquidation on July 12.
- 50,000 BTC sold over the last three weeks, primarily from Movie2K seizure.
- Long-term holders accumulated 85,000 BTC in the past 30 days.
German Government Bitcoin Sale Concludes, Market Reacts
The German government has completed the liquidation of its Bitcoin (BTC) holdings. On-chain data shows that a series of transactions on July 12 marked the end of these sell-offs.
The government had been steadily increasing its selling pressure over the past few weeks, unloading tens of thousands of Bitcoin in multiple batches.
The majority of the 50,000 Bitcoin sold by the government in the last three weeks came from a seizure of Bitcoin from Movie2K, a film piracy website in January. This significant sell-off played a major role in keeping the market price below $60,000.
Source: Arkham
This move has generated significant discussion within the crypto community, with many speculating about its potential market impact and many
According to Arkham Intelligence, the German government initiated its sales by transferring 2,700 BTC to major exchanges like Kraken, Bitstamp, and Coinbase, as well as using other institutional deposit services.
Subsequently, they received 4,169 BTC back, indicating efforts to mitigate the sell-off's market impact. Additional transactions included 748.25 BTC sent to Cumberland and another 2,300 BTC to Kraken and other services.
The final transactions involved transferring 3,094 BTC to an institutional deposit service and 752.166 BTC to Flow Traders.
Long Term Holders Accumulating Bitcoin (BTC)
According to the latest post by technical analyst CryptoSoulz on X, long-term holders have accumulated over 85,000 BTC in the past 30 days. This accumulation is seen as a bullish signal for Bitcoin's price.
Source: X
CryptoSoulz also noted that the entry of older Bitcoin wallets initially caused a price drop. However, since the quantities involved are relatively small, this selling pressure is expected to be short-lived, with prices likely to recover soon after the initial impact.
He predicts that Bitcoin's price could rebound to $62,000. However, if it falls below $54,000, the next support level would be around $49,500.
Positive Signals On Technical Chart
On the daily technical chart, Bitcoin price is showing positive indications. The MACD indicator formed a bullish crossover and a green histogram bar suggesting a bounce back from current price towards the $60,000 level.
At the time of writing, Bitcoin's price was trading at 58,138 with an intraday gain of 0.45%. Its market cap stands at 1.15 trillion with a 24-hour trading volume of 22.65 Billion.
Conclusion
The German government's Bitcoin liquidation has stirred significant market speculation, yet long-term holders' accumulation signals bullish potential. Despite initial price drops from older wallet entries, recovery is expected. Technical indicators suggest a positive outlook, with Bitcoin potentially rebounding toward upper levels.
