The German government resumed the day with more selloffs of its Bitcoin assets reducing the total assets held in the German BKA-linked wallet to 6,146 at the time of the report.
This means that the German government has sold 87.6% of its initial stash of 50,000 BTC.
The On-chain activities of the German authorities are closely monitored by the global crypto community due to their effect on the price of crypto assets, especially Bitcoin.
According to Arkham Intelligence blockchain data, the German government resumed the day by selling off a total of 3,450 BTC to various platforms.
The Onchain data from Arkham intelligence showed that the German government transferred 400 BTC each to Bitstamp, Kraken, and Coinbase while 1000 BTC and 500 BTC were transferred to unknown wallets.
The latest transaction by the German BKA wallet is a 748.251 BTC transfer to a wallet owned by Cumberland DRW a cryptocurrency trading division of DRW holdings.
This leaves the German BKA wallet with a little over $351 million worth of BTC left from a staggering initial asset of over $2 billion.
Crypto analyst Michael Van de Poppe shared his reaction to this development on X predicting that the German government might sell off its entire Bitcoin holdings today. He also lauded how Bitcoin has been able to absorb the selling pressure and still retails for a little under $60,000.
“Saxony, a German State, has sold almost all seized Bitcoin. They held $3.5B of Bitcoin (50000 $BTC) and are only left with approximately $300 million, likely to be sold today. It’s incredible that this sell pressure has been absorbed and that Bitcoin’s price is around $60K”.
Crypto analyst and co-founder of Apollo Satts Thomas Fahrer wondered why the German government was selling its Bitcoin assets for Fiat money that could easily be printed.
“ German government continues to sell #BTC transferring out 2,700 #Bitcoin($154.6M) in the last hour. It remains unclear why they would sell the hardest asset on earth for the paper they can print” He tweeted.
German BKA and Mt. Gox as Crypto Whales
The activities of the German-linked BKA wallet prove the effect of crypto whales on the price of crypto assets in the market. The German BKA wallet which initially held 50,000 BTC serves as a whale and its decision to dump most of its assets has played a key role in the recent drop in Bitcoin price recently.
The German government has sold 87.6% of its 50,000 BTC stash seized from a popular movie piracy site.
The adverse effect of the German government dumping BTC and the proposed redistribution of over $8 billion worth of BTC to creditors by the now defunct Mt. Gox crypto exchange is a perfect example of the significance of crypto whales in the market and how their activities are powerful enough to affect prices of crypto assets.
What to Know
- German lawmaker Joana Cotar who is Pro Bitcoin has expressed strong disapproval on the decision of the German government to dump its Bitcoin assets. She maintained that the German government could have kept the asset as a ‘strategic reserve currency’ and a viable alternative to traditional finance-controlled Fiat money.
- Crypto whales are individuals or entities that hold large amounts of cryptocurrency. Their activities are monitored by market watchers due to its ability to affect the price and liquidity of crypto assets.
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