German Government Transfers Another 1,000 Bitcoin Worth $56M to Exchanges and Unknown Wallet

• The German government transfers 500 BTC to unknown addresses, sparking speculation about their intentions.
• Joana Cotar criticizes Germany’s Bitcoin selloff, advocating for a strategic reserve currency approach.
• Over 4,837 BTC moved by Germany to exchanges since July 1, causing panic selloff and bearish market sentiment.

The German government continues to move significant quantities of Bitcoin to various centralized exchanges, raising questions about its broader strategy. According to data from the on-chain analytics platform Arkham, government-linked addresses transferred 250 Bitcoins each to Bitstamp and Coinbase. These transactions, valued at nearly $28 million, are part of a larger pattern observed over recent weeks.

Source: Arkham on X

Major Transfers to Centralized Exchanges

In addition to the transfers to Bitstamp and Coinbase, another 500 Bitcoins were moved to an unlabelled address. This address could potentially belong to a centralized crypto exchange or an over-the-counter (OTC) service, adding to the speculation surrounding the government’s intentions. Currently, the German government holds 38,826 Bitcoins, totaling approximately $2.17 billion.

Internal Criticism and Market Impact

Not everyone within the German government supports these actions. Joana Cotar, a member of the German Bundestag, has voiced strong opposition. Cotar criticized the decision to sell the Bitcoins without a comprehensive strategy. She argued that instead of selling, the government should consider holding Bitcoin as a strategic reserve currency, similar to discussions happening in the United States.

Cotar’s criticism highlights a broader debate about the role of cryptocurrencies in national reserves and the potential benefits of holding them long-term. She described the government’s current approach as “not sensible” and “counterproductive,” reflecting a growing divide within the government on this issue.

Extended Selling SpreeThe German government’s recent actions have not been limited to the aforementioned transactions. On July 8, they transferred 133.723 Bitcoins, worth nearly $7.63 million, to the crypto market maker Cumberland DRW. This followed an initial test transfer of 0.001 Bitcoins. In total, the government has moved over 4,837 Bitcoins to exchanges like Coinbase, Bitstamp, and Kraken, as well as other wallet addresses. This extensive selling has contributed to a drop in Bitcoin prices, with the current value hovering around $57,078.15 at press time.

Ongoing Trends and Future Expectations

Since July 1, the government has transferred 6.37K Bitcoins, valued at approximately $494.45 million. These continuous moves have sparked a panic selloff among investors, leading to a bearish sentiment in the market. As of now, the government still holds 35,488 Bitcoins, estimated to be worth $2.03 billion.

The German government’s actions are part of a larger trend that suggests further selloffs may occur in the coming days. This has significant implications for the cryptocurrency market, particularly for Bitcoin investors who are closely watching these developments.