The German government has continued its Bitcoin sell-off, moving approximately 3,100 BTC worth around $178 million within an hour on July 9. This activity suggests more sell-offs are imminent.
Recent Bitcoin Movements
On July 9, the German government made significant Bitcoin transactions:
- Outflow: About 3,100 BTC worth $178 million was transferred.
- Withdrawal from Bitstamp: Approximately 1,700 BTC worth $91.78 million was withdrawn, reclaiming holdings from the exchange.
- Additional Movement: A further 3,107 BTC was shifted out of the main holdings, likely for future sell-offs.
The main government address now holds around 26,000 BTC worth $1.5 billion, while the address used for off-loading currently holds 4,800 BTC worth $276.61 million.
Detailed Breakdown
Since 7:30 am UTC on July 9, the following transactions were observed:
- Unknown B2C2 Group: Received 2,500 BTC.
- Kraken Exchange: Received 400 BTC.
- Unknown Wallet: Received 200 BTC.
Continuing Sell-Off Strategy
On July 8, the German government sold an additional $900 million worth of BTC. Despite the massive sell-off, the 16,309 BTC sold is now valued at over $930 million, indicating buyer confidence at current price levels.
Economic and Market Impact
Wall Street traders anticipate a 72% chance of the US Federal Reserve cutting interest rates in September. Lower interest rates typically boost investment in risk-on assets like Bitcoin, as opposed to more stable assets like gold, which attract liquidity during geopolitical instability.
The BTC sell-off coincides with reduced activity from Bitcoin miners and reserve sell-offs, suggesting that market sentiment might be approaching a bottom. Bitfinex analysts noted evidence of this local bottom on July 6 and 7, despite Mt. Gox starting its BTC and Bitcoin Cash (BCH) repayments.
Potential for Bitcoin Rebound
Several indicators suggest that Bitcoin might be poised for a rebound despite ongoing sell-offs:
- Price Movement: BTC recently hit its lowest point since late February, dropping to $53,550 before recovering to current highs of $57,600.
- Relative Strength Index (RSI): The RSI indicator shows a growing divergence between the falling price and rising RSI value, indicating weakening sell pressure.
- Total BTC Holdings: Main government address holds 26,000 BTC ($1.5 billion); off-load address holds 4,800 BTC ($276.61 million).
- Key Transactions: 3,100 BTC outflow, 1,700 BTC withdrawn from Bitstamp.
- Market Indicators: Potential bottom in market sentiment, possible BTC rebound.
