Germany’s Bitcoin Wallet Balance Reaches Zero
Germany’s on-chain Bitcoin wallet balance has hit zero, according to a report from Arkham Intelligence. This development suggests that sell pressure from Germany, a major player in the European economy, may be coming to an end.
The End of Bearish Sentiment
The recent outflows from Germany’s wallet mark a turning point in the market, potentially signaling the end of a bearish trend that has been looming over the crypto market for weeks. On-chain indicators are also pointing towards a local bottom being near.
The Last Bitcoin Sale
As of late Thursday, the German government only had 4925 BTC ($282.45 million) remaining in its wallets, a significant decrease from the 50,000 BTC it held just a few weeks ago. This decrease is due to the seizure of BTC from the movie piracy website Movie2k in January.
Early on Friday, the government received 4169 BTC back from exchanges like Kraken, Coinbase, and Bitstamp, before sending 2700 BTC back to these platforms by 5:00 am ET. By 10am, another 2300 BTC was sent to Kraken, an unidentified address, and a potential institutional deposit or over-the-counter transaction.
Has Germany’s Bitcoin Sale Hit Rock Bottom?
Germany recently made headlines by selling off a large portion of its seized Bitcoin holdings. This move came amidst a wave of government sales of cryptocurrency, including the U.S. government’s sale of coins seized from criminals.
The Impact on the Market
Many in the market were concerned about the impact of these sales, especially in light of ongoing fears about repayments to creditors of the bankrupt Mt. Gox exchange. Combined with low demand from large Bitcoin holders and a lack of stablecoin liquidity, the market saw a significant drop in Bitcoin’s price, reaching a low of $53,900 last Friday.
Reactions from Investors
Online Bitcoin investors have mixed reactions to the government’s decision to sell off its seized coins. While some are celebrating the completion of the selloff, others are critical of the government for exchanging their Bitcoin for fiat currency.
“Germany’s decision to dump their seized BTC could be viewed as a major mistake in the coming decades,” tweeted one user, highlighting concerns about the long-term impact of the sale.
Bitcoin Price Analysis and Market Trends
Research co-founder Will Clemente shared some insights on the current state of the Bitcoin market. MicroStrategy’s executive chairman Michael Saylor also made a comment on the government’s role in Bitcoin transactions, highlighting the importance of holding onto your assets.
On-Chain Analysis
According to on-chain analysts, the recent selloff in Bitcoin has created a favorable entry point for new investors. Institutional investors have been accumulating BTC at a rapid pace, indicating a strong interest in buying the dip. Short-term holders, on the other hand, have been selling their coins at a loss, signaling that market fear may have peaked and a price correction is imminent.
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