Germany’s on-chain Bitcoin wallet balance has officially reached zero, signaling the potential end of sell pressure from the European economic powerhouse. This news comes from Arkham Intelligence, who reported that the government’s wallet had just 4925 BTC left, down from 50,000 BTC in June. The recent outflows from the wallet mark the conclusion of a bearish narrative that has been looming over the crypto market in recent weeks.
On a late Thursday, the government received back 4169 BTC from exchanges such as Kraken, Coinbase, and Bitstamp. However, by 5:00 am ET, they had sent back 2700 BTC to these platforms. Additional transactions followed, with the state sending another 2300 BTC to Kraken, an unidentified address, and a likely institutional deposit/over-the-counter trading service. By 2:35 pm, the government had transferred the remaining 3846.05 BTC to the institutional trading desk and Flow Traders.
Germany’s selling of Bitcoin coincided with the U.S. government selling coins seized from criminals. This, combined with market fears related to repayments to Mt. Gox creditors, led to a lack of bullish momentum and a significant price drop for Bitcoin. The cryptocurrency fell to $53,900, marking its largest pullback from its March high of $73,700.
Following the government’s selloff, Bitcoin investors online have expressed mixed reactions. While some celebrate the completion of the sales, others criticize the state for converting their seized coins into fiat currency. Reflexivity Research co-founder Will Clemente tweeted that Germany’s action may be viewed as a strategic blunder in the coming decades. MicroStrategy’s Michael Saylor also weighed in, suggesting that selling Bitcoin could be a mistake.
With the government’s selloff complete, on-chain analysts believe that Bitcoin’s price presents a favorable entry point for new investors. Institutional investors have been accumulating BTC at a rapid pace, indicating that they see the recent dip as a buying opportunity. Additionally, the mass selling of coins by short-term holders suggests that market fear has peaked, paving the way for a potential price correction.