For some time now, reports have emerged that the German government is selling its Bitcoin holdings, putting pressure on the cryptocurrency market. Data from on-chain analytics reveals that Germany still possesses a substantial amount of BTC, which they are compelled to sell.
Amount of Bitcoin Held by the German Government
Details from Arkham Intelligence indicate that the German government retains nearly 24,000 BTC totaling $1.42 billion. Recent transactions show they have transferred over 1,100 BTC in the last 24 hours to crypto exchanges and market makers, including 800 BTC to Kraken.
Despite the negative impact of the German government’s actions on the market, a report by Coindesk explains that they have no alternative but to sell these BTC holdings, which were part of the 50,000 BTC seized from the operator of the pirated movie website Movie2k earlier this year.
Saxony, a state in Germany, found the movie website guilty of illegal activities, leading to the mandate for selling these bitcoins as part of the standard procedure. Dr. Lennart Ante, CEO of the German-based Blockchain Research Lab, clarified that the Saxony government must sell these bitcoins according to established guidelines.
Institutional Investors Seize Bitcoin Dip Opportunities for Three Consecutive Days
While the German government continues to sell off their Bitcoin holdings, institutional investors view this as a chance to acquire more. Farside investors’ data indicates that Spot Bitcoin ETFs have shown three consecutive days of net inflows as of July 9.
These funds witnessed a total net flow of $216.4 million, following previous net inflows of $294.8 million and $143.1 million on July 8 and 5, respectively. This change marks a positive trend for these Spot Bitcoin ETFs after experiencing mixed flows previously.
The recent dip in BTC prices presented an opportunity that institutional investors were quick to capitalize on, leading to a positive impact on Bitcoin’s price, which is nearing $60,000 once more.
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