The German government, which has been selling Bitcoin intensively since June, increased its sales yesterday and sent approximately $900 million worth of Bitcoin to exchanges and market makers.
Surprisingly, the German government took back some BTC these days when it was selling heavily.
According to Arkham's post, the German Government sold 6,306.9 BTC worth $362.12 million today.
Accordingly, in the last 3 hours, the German Government sent 6306.9 BTC ($362.12 million) to Kraken, Cumberland, 139Po (presumably institutional deposit/OTC service) and bc1qu address.
The German Government has bought back 5366 BTC from Kraken, Bitstamp and Coinbase exchanges since yesterday's sales.
The German Government currently has 22,846 BTC worth $1.31 billion in its wallet.
The German government's decision to transfer BTC directly to CEXs instead of generally opting for OTC transactions led to panic and significant price volatility in the market. Normally, large institutions prefer OTC transactions to reduce market impact.
The Market is Large enough to Handle Possible Bitcoin Sales!
While many experts have been making analysis about German government sales and Mt.Gox refunds recently, one of them was CryptoQuant CEO Ki Young Ju.
CryptoQuant's CEO said that the declines in Bitcoin are not very important, on the contrary, they present a buying opportunity:
“The Bitcoin market is largely driven by psychopaths. Government sales are negligible given all liquidity and Mt. Most of Gox BTC assets have not reached creditors
But still the German government is blamed for the decline in sales. Smart money is replacing stupid money. “We're still in the early stages.”
Crypto analyst Alex Krüger also made an analysis about possible Mt. Gox claimed that its sales would cause a decline of at most 10% from current levels. CryptoQuant CEO stated that he agreed with Krüger's analysis and said:
” Great analysis from a macro perspective.
The German government and Mt. Gox creditors, the Bitcoin market could absorb this with an estimated impact of -10.5%. A drop to $47,000 – $48,000 at most.
Mt. Gox and the government's BTC sale will not end this cycle.”
Great analysis from a macro perspective.
Despite potential liquidity dumps from the German govt and Mt. Gox creditors, #Bitcoin market can absorb it with an estimated -10.5% impact. Say $47-48K level.
Mt. Gox and govt BTC selling won't end this cycle. https://t.co/dOFdxmuvRn
— Ki Young Ju (@ki_young_ju) July 8, 2024
*This is not investment advice.
