German Government Sells $900M in Bitcoin, Pressures Market

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The German government’s cryptocurrency wallet labeled “BKA” has offloaded another $900 million worth of Bitcoin, sparking concerns about further declines in BTC prices. Repeated transfers to centralized exchanges suggest the government intends to sell its remaining $1.3 billion in Bitcoin holdings.

Major Bitcoin Liquidation

On July 8, the wallet associated with the German government transferred approximately 16,309 Bitcoin in multiple transactions to various external addresses. This marks the largest single-day Bitcoin liquidation by the German government. According to Arkham Intelligence, the transfers were made to several crypto exchanges including Bitstamp, Coinbase, and Kraken, as well as market makers Flow Traders and Cumberland DRW.

Notable Transactions

  • Flow Traders: Received 3,500 BTC
  • Kraken: Received 200 BTC
  • Bitstamp: Received 400 BTC
  • Coinbase: Received 400 BTC

Additionally, 700 BTC, worth over $38.5 million, was sent to the wallet “139Po,” which remains unidentified but has previously received funds from the German government.Source: Arkham Intelligence

Market Impact

Following these significant transfers, Bitcoin’s price dropped sharply during the European trading session. The price fell by as much as 6.75%, from a high of $58,200 to a low of $54,278. This price drop led to massive liquidations across the crypto market. Coinglass data indicates that a total of $425 million in leveraged positions were liquidated, with $216 million in long positions.

Bitcoin Liquidations Breakdown

  • Last 24 hours: $189 million in BTC positions liquidated
  • Last 12 hours: $87 million in BTC positions liquidated
  • Long BTC positions: $81 million liquidated
  • Short BTC positions: $107.97 million liquidated

Current Holdings and Future Implications

Since beginning its offloading in June, the German government’s Bitcoin holdings have decreased from 50,000 BTC to 23,788 BTC, worth about $1.3 billion. The latest transfers indicate that the government is more than halfway through its planned sales.

Bitcoin has found significant support at the $54,700 mark. However, a move below this level could lead to the liquidation of approximately $750 million in leveraged long positions across all exchanges, based on Coinglass data.

Raj Sharma
Raj Sharma
I have been involved in the blockchain industry for over 5 years and have an extensive understanding of the technology. My career in cryptocurrency started with writing articles about blockchain technology and its use cases for various publications.

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