German Government Moves 3,100 BTC Worth $178 Million in One Hour, Further Sell-Offs Expected
The German government has continued its Bitcoin sell-off, moving approximately 3,100 BTC valued at around $178 million within an hour on July 9. Concurrently, the government also withdrew roughly 1,700 BTC worth approximately $91.78 million from Bitstamp, reclaiming BTC holdings from the exchange.
Currently, the German government has shifted an additional 3,107 BTC from its main holdings, signaling a likely imminent sell-off. The primary government address now holds around 26,000 BTC worth $1.5 billion, while the address used for off-loading holdings currently holds 4,800 BTC worth $276.61 million.
Continued Sell-Off by the German Government
Since 7:30 am UTC on July 9, there has been a total outflow of 3,100 BTC, with 2,500 BTC sent to an unknown B2C2 Group, 400 BTC to the centralized exchange Kraken, and the remaining 200 BTC to an unknown wallet.
On July 8, the German government sold an additional $900 million worth of BTC, indicating ongoing plans to steadily liquidate its remaining $1.5 billion Bitcoin holdings. The same 16,309 BTC sold is now valued over $930 million, suggesting that buyers remain confident in purchasing BTC within this price range.
Economic Policy Impact
Wall Street traders predict a 72% chance that the US Federal Reserve will cut interest rates in September, potentially boosting investment in BTC. This macroeconomic trend often significantly impacts assets like BTC, considered risk-on assets, unlike gold, which attracts liquidity during geopolitical instability.
Alongside the BTC sell-off, a reduction in BTC miner activity and reserve sell-offs indicates that market sentiment might be nearing its bottom. According to Bitfinex analysts, market data from July 6 and 7 suggests this local bottom, despite Mt. Gox beginning its BTC and Bitcoin Cash (BCH) repayments.
Potential BTC Rebound
Despite the BTC sell-offs linked to the German government and Mt. Gox repayments to creditors, several indicators suggest that BTC may be poised for a rebound. BTC reached its lowest point since late February, touching $53,550 before reversing to current highs of $57,600.
Additionally, the relative strength index (RSI) indicator showed a growing divergence between the falling price and rising RSI value, suggesting weakening sell pressure.
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