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German Government BTC Sell-Off a One-Time Event, Spot Sales Unwise!

Key Points:

Germany started selling Bitcoin seized from Movie2k.to operators, recovering 7,106 BTC over the past 20 days.
The decision to sell on centralized exchanges caused market fluctuations and panic, prompting a shift to over-the-counter sales.
Spot On Chain predicts Bitcoin will reach $100,000 by year-end, viewing the sell-off as a one-time event.

On June 18, 2024, the German government BTC stepped up its efforts by selling $2 billion worth of Bitcoin confiscated from operator movie2k.to pirates in 2013.

Within the past 20 days, 7,106 Bitcoins—over $412 million equivalent—have already been regained. Most of the selling was done through CEX at lower prices and departed from almost the usual use of the over-the-counter market by institutions to sell to avoid panic within the markets and avoid no good market impressions.

German Government BTC Sell-Off Causes Market Panic

The German government BTC‘s direct transfer of Bitcoin to CEX was followed by huge market panic and large fluctuations. This was followed by the subsequent withdrawal of BTC from the exchange, insinuating a realization that spot sales were far from perfect. Instead, it has started transferring Bitcoin to Flow Traders and Cumberland, which handles Over-The-Counter transactions. Indeed, this strategic shift implies movement toward the least disturbance in the market and sustaining stability.

Despite these efforts, the continued flow of funds in and out of CEX suggests either the intentional creation of market panic or stressful times within the German government BTC department in charge of the sell-off. Placing things into perspective, the daily trading volume of Bitcoin often reaches $36 billion, so the German government sell-off was relatively small. The sharp price drop was likely due to the psychological impact of on-chain fluctuations on traders and not because of the actual quantity of Bitcoin sold.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.