The German government is resending 2,000 bitcoin to exchanges as its balance continues to decrease

On Friday, 10x Research released a research note indicating that the German government’s selling pressure is subsiding and that Bitcoin is technically oversold.

Over the course of a 24-hour period, the German government has transmitted over 2,000 Bitcoin to exchanges and trading platforms in a significant move.

According to data from blockchain analytics firm Arkham Intelligence, Germany’s Bitcoin holdings have decreased from 9,094 to approximately 6,894 BTC as a result of the large-scale movements.

Based on the current price of $57,290 per Bitcoin, the German Government (BKA) held approximately 6,894 Bitcoin as of July 12, 2024, which is equivalent to $394.97 million per Bitcoin.

The government has transferred a total of 5,000 BTC to a variety of cryptocurrency exchanges and market operators since late last night, with the transfers commencing on July 11.

Major exchanges, including Kraken, Bitstamp, and Coinbase, as well as trading firms like Flow Traders and a wallet that Arkham has associated with institutional liquidity provider B2C2 Group, were among the recipients of these transfers.

The government continued its transfer activity in a subsequent move on July 12 at 15:02 UTC+8. It distributed 1,200 BTC equitably among Kraken, Coinbase, and Bitstamp, with each entity receiving 400 BTC.

It is intriguing that Coinbase, Kraken, and Bitstamp returned 4,169 BTC in two distinct transfers early on Friday morning. It is difficult to determine the source of the failure from onchain data, but it is possible that it was due to an unsuccessful sell transaction.

The act of transferring Bitcoin from government accounts to an exchange does not necessarily imply that the funds were transferred.

However, these developments have resulted in a substantial decrease in the German government’s Bitcoin holdings. The government held 9,094 BTC prior to these transactions.

In the meantime, 10x Research reported in a research note released on Friday that the German government’s selling pressure is subsiding, and Bitcoin is technically oversold.

The Fed is anticipated to reduce interest rates in the near future, which will provide the liquidity support that many have been anticipating, and ETFs are purchasing the decline, according to the report.

“If the Federal Reserve reduces rates solely due to inflationary concerns in September 2024, it could have a short-term positive impact on Bitcoin.” Nevertheless, the report indicated that Bitcoin could encounter substantial selling pressure if growth concerns are the driving force behind the reduction, whether in September or later.

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