On-chain data from Arkham Intelligence revealed that a wallet linked to the German government transferred over 16,000 Bitcoin (BTC), worth more than $900 million, to various external addresses on July 8.
This marks the largest single-day sell-off by the government so far.
The transactions distributed Bitcoin to several crypto exchanges, including Bitstamp, Kraken, and Coinbase, as well as market makers Flow Traders and Cumberland DRW.
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Among the largest transfers, 3,500 BTC were sent to Flow Traders, while Bitstamp, Kraken, and Coinbase received 1,400 BTC, 900 BTC, and 900 BTC, respectively. Notably, 2,000 BTC, valued at over $114 million, were transferred to an unknown wallet labeled "139Po," which had also previously received significant amounts from the German government: 700 BTC on July 6, 1,700 BTC on July 4, and 550 BTC on July 2.
These transactions indicate that the German government is nearly halfway through its selling process. Since they began offloading the digital asset in June, their holdings have decreased from 50,000 BTC to 27,461 BTC, currently valued at $1.57 billion.
The aftermath of these transactions was Bitcoin's price dropping to a low of $54,278 on that day. However, it has since rebounded to $57,289 at the time of writing.
Adding to the selling pressure is the repayment process for the creditors of the long-bankrupt Mt. Gox crypto exchange. It was announced on July 5 that repayments in Bitcoin and Bitcoin Cash (BCH) have started through designated exchanges.
Despite the current selling pressures from the German government and Mt. Gox repayments, the market remains hopeful for a rebound in Bitcoin prices as these immediate influences taper off.
