Germany to Increase Bitcoin Selling Pressure as It Transfers Another $52M in BTC

The selling pressure on Bitcoin created from the sales of BTC reserves under the German government affects the entire crypto market. The article noticed that the United States and German governments are two of the biggest Bitcoin holders.

German Government is Selling Bitcoin in Installments

A recent article on the matter has indicated that the government of Germany has started to transfer Bitcoins in installments from its $2.75 billion holdings. The latest installment from this reserve held at the German Government Bank or BKA is estimated to contain Bitcoins worth $52 million.

The latest sales of Bitcoins from BKA have raised concerns among investors about the potential of more Bitcoin sales from the federal bank. If such an event comes to pass, it has the potential to increase the selling pressure for Bitcoin. The wallet account under the custody of the German government is speculated to have transferred around 832.7 Bitcoins in four installments on 2nd July 2024.

The first installment contained 100 Bitcoins that were sent to Coinbase. The second had 150 Bitcoins transferred to Bitstamp, and the third one with 32.74 Bitcoins was routed to Kraken. These statistics were quoted from crypto analytics firms namely Arkham Intelligence.  

The biggest Bitcoin transaction was sent to a wallet 139Po with 550 Bitcoins. The same wallet also received new Bitcoin transfers of 100 units on 25th June and 800 Bitcoins on 20th June.

Traders and Investors are Anticipating Bitcoin Selling Pressure

The analysis has suggested that sales of more Bitcoin from the BKA wallet may lead to increased selling pressure for Bitcoin. At present, the federal Bitcoin wallet holds around 43,850 Bitcoins valued in $2.75 billion.

Analysts project that in the event of more Bitcoin sales from the BKA-wallet, Bitcoin prices can experience more selling pressure. At the same time, Bitcoin investors are also tracking all the BKA sales in order to monitor the potential of upcoming price changes for Bitcoin prices.

Since the start of June, Bitcoin prices have moved in a downward trend. For the last month, Bitcoin prices declined by 7.3% and was trading at $58,460 as of 24th June. Data projections from Bitstamp have indicated that Bitcoin prices have reached above $62,000 following a reversion on 24th June.

The analysts marked down $61,500 as a support level for Bitcoin. Meanwhile, data projections from Coinglass speculate that further price decline can lead to the liquidation of $1 billion in leveraged Bitcoin positions on exchange platforms.

The big question among Bitcoin investors now is whether the government of Germany is working on selling their Bitcoin reserves or not? As per the analysts, the $32 million Bitcoin transfer to regulated exchanges is an indication that the federal authorities have a higher probability of selling their Bitcoin reserves.

The Federal Criminal Police Office (BKA) is yet to issue an official statement on the matter. The first Bitcoin transactions by BKA wallet started in June when the authorities sent 6,500 Bitcoins estimated to be around $425 million.

Spot Bitcoin ETFs Listed in the United States Report $654 Million in Inflows

Spot Bitcoin ETF analysis indicates that inflows have undergone an increase since 5th July 2024. A new report claims an inflow of $650 million in Bitcoin ETFs listed in the United States since 5th July 2024.

These inflows are aggregated from investments for the month of July for 11 Bitcoin ETFs listed in the United States. The top two inflow recorders were BlackRock collecting $121 million while Fidelity Wise Origin Bitcoin Fund collecting $91 million.

The overall inflows in US-based Bitcoin ETFs were estimated to be around $216.4 million or 3,760 Bitcoins as per Farside data. Meanwhile, the aggregate inflows on 8th July were estimated to be around $294.8 million and on 5th June were reported to be around $654 million.

Since 4th July, Bitcoin prices have remained under $60,000. Statistics from TradingView indicate that Bitcoin prices dropped by 15% during the last month.

However, some analysts have speculated the potential of a price surge in the event that ETFs drive up prices. 21st Capital co-founder and CEO Sina G claims that the Bitcoin surge from $16k to $572k was paved by ETF listings.

She further stated that until the middle of March this year, Bitcoin spot ETF inflows perpetually propped up prices. However, after March the ETF inflows slowed down which led Bitcoin prices to trickle to trade at $56,000.