For some time now, the German Government was reportedly in the process of dumping his Bitcoin holdings, adding significant sales pressure on the flagship cryptocurrency. On-chain data shows that they still hold a significant amount of BTC, which they have no choice but to sell.
How many bitcoins does the German government hold?
Data from the on-chain analysis platform Arkham Intelligence shows that the German government still holds nearly 24,000 BTC ($1.42 billion). Other data shows that they are still looking to offload more of their holdings, as they have transferred over 1,100 BTC in the last 24 hours to crypto exchanges and market makers. Specifically, the German government transferred over 800 BTC to the Kraken crypto exchange.
However, while the actions of the German government have undeniably had a negative impact on the market, a recent report by Coindesk shows that they have no choice but to get rid of these BTC holdings. These bitcoins were part of the nearly 50,000 BTC seized from the operator of the Movie2k pirated movies site earlier this year.
Interestingly, a German state, Saxony, has found the movie’s website guilty of money laundering and other illegal activities. Dr. Lennart Ante, co-founder and CEO of the Germany-based Blockchain Research Lab, told Coindesk that the Saxony government must sell these bitcoins as per standard procedure.
Lennart mentioned that the Saxony General Prosecutor’s Office is usually responsible for the liquidation of confiscated assets and is mandated to liquidate them within a certain period of time. He further noted that the reason why the police and not Saxony itself initiates these sales is probably because they were involved in the initial investigation and are more familiar with the movement and unloading of such assets. large amount of bitcoinHowever, it has emerged that the police are simply acting on instructions from Saxony.
Institutional Investors Buy Bitcoin for Third Day in a Row
As the German government continues to dump its Bitcoin holdings, institutional investors saw this as a buying opportunity to accumulate further. Farside investor data shows that Spot Bitcoin ETFs recorded their third consecutive day of net inflows on July 9.
These funds recorded a total net flow of $216.4 million. They had recorded net inflows of $294.8 million and $143.1 million on July 8 and 5, respectively. This represents a turnaround for these funds. Spot Bitcoin ETFsknowing that they had already experienced mixed flows before. This suggests that institutional investors were undecided about whether or not to commit to buying more Bitcoin.
However, the recent BTC drop seems to have presented an opportunity that these institutional investors could not pass up. Their actions have had a positive impact on the price of the flagship cryptocurrency with Bitcoin close to $60,000 again.
At the time of writing, Bitcoin is trading at around $59,000, up more than 3% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart by Tradingview.com
