Cryptocurrencies

Germany to Dump $276 Million in Bitcoin Again


The German government is keeping the Bitcoin world quite busy. If we Arkham Intelligence’s analyses are to be believed, the Germans are preparing to dump another 4,800 Bitcoin on the market. The main wallet of the German authorities currently holds 26,000 Bitcoin, worth around 1.5 billion dollars.

$276 Million Worth of Bitcoin in Sales

The German government’s sales wallet currently holds 4,800 Bitcoin, worth about $276 million. After the sales of the past few days, there is a good chance that those Bitcoin will hit the market soon.

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Bitcoin has suffered quite a bit from the German government’s sales, as evidenced by the price dropping to $53,500 last week. Now investors are hoping that Bitcoin’s declines are mainly the result of the German government, as that would mean that the outlook can slowly start to rise again.

The German government’s massive selling frenzy also shows that Bitcoin is starting to become a mature asset. That is, Bitcoin can handle it if a large entity decides to liquidate billions of dollars worth of Bitcoin.

Of course we see the price drop because of this, but in the past this would probably have had much bigger consequences for the Bitcoin price. Now the market is more liquid and we can apparently absorb these kinds of sell-offs.

Focus on next Thursday

The market’s focus for the coming days will probably be on Thursday. That’s when it’s time for another consumer price index (CPI) in the United States. In recent months, the CPI has been somewhat lower than expected, which increases the chance of rapid interest rate cuts from the US central bank.

Last month, the Federal Reserve indicated that they want more confirmation before they can seriously consider, for example, a rate cut in September.

In recent weeks we have already seen this in the form of weak data from the US labor market (unemployment down to 4.1%) and disappointing Retail Sales (US retail sales figures).

This increases the likelihood that inflation will fall again on Thursday and the Federal Reserve will finally have the space to lower interest rates and thus also the downward pressure on the Bitcoin price.

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