Germany dumps record amount of Bitcoin, but price remains remarkably stable

Germany sold more Bitcoin than ever before last Monday. This caused major fluctuations in the value of Bitcoin (BTC), the most important digital currency. The price collapsed this weekend, but the recovery has already started. The price is slowly creeping back towards 53,000 euros.

Banner Bitcoin 1

Germany is selling Bitcoin en masse

According to data from blockchain company Arkham The German government recently sent a record amount of Bitcoin to various exchanges, increasing selling pressure on the market.

Information from the German government’s digital wallet shows that 2,730 Bitcoin (approximately 135 million euros) was sent first, followed by a larger transaction of 8,100 Bitcoin (more than 410 million euros).

Later, another 5,200 Bitcoin (around 265 million euros) were sent to Kraken, Bitstamp and Coinbase. In total, Germany sold more than 16,000 Bitcoin that day, an absolute record.

Is Germany Selling Less Influential Than Thought?

Germany’s selling frenzy has left the country with just 23,787 Bitcoin (around 1.17 trillion euros). This is less than the half of the Bitcoin which was seized in January 2024.

However, experts believe that the impact of the German sales may be overstated. According to Ki Young Ju, CEO of CryptoQuant, the Bitcoin sold represents only 4% of the total market value.

The Bitcoin price has even increased by 350% in 2023 despite previous massive sell-offs. This suggests that the market can absorb the Bitcoin sell-off well.

Bitcoin investors return

After the German sales and the unrest on the crypto market, investors are now turning en masse to Bitcoin. According to asset manager CoinShares last week, another 360 million euros flowed into Bitcoin funds. This is a big turnaround after three weeks of money flowing out of Bitcoin.

Fidelity and ProShares led the way with investments of €180 million and €90 million respectively. Grayscale, another major player, saw €80 million flow out.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button