After a long blood bath, the German government is finally out of Bitcoins with a total holding of zero. The event marks an important milestone since from the start of this year, the German government’s huge Bitcoin selling actions had created an overall market pressure, pulling the prices of the OG-crypto currency down.
German Govt’s Past Selling Actions
Based on available information, the German government had last sent $600 million worth of Bitcoin to cryptocurrency exchanges such as Bitstamp, Coinbase, and Kraken, as well as other service providers including Cumberland DRW and Flow Traders, using Bitcoin wallets linked to the German government. As Bankless Times reported, the authorities’ wallets held 4,925 BTC at that time.
Previously, some 16,309 BTC had been sent by the German government to several external addresses, including market makers Cumberland DRW and Flow Traders as well as cryptocurrency exchanges Bitstamp, Kraken, and Coinbase. The ongoing sale of Bitcoin by the German government has impeded the trading of the biggest cryptocurrency based on market capitalization.
Another big selling trade happened when the $13 million worth of BTC that the German government gave to Coinbase was fulfilled. Still, this was hardly the first action in the series.
In January, the German government started attempting to liquidate its Bitcoin holdings. German authorities claimed to have confiscated 50,000 Bitcoin that same month; at the time, this was reportedly Germany’s largest capture.
What’s Next For Bitcoin?
The price fluctuations of Bitcoin have been impacted by both particular market events and macroeconomic variables during the last month. Interestingly, institutional inflows have been significant; in the last week alone, nearly $800 million has been invested in U.S. spot Bitcoin ETFs. The surge in institutional investment has reinforced the ongoing belief in the long-term prospects of Bitcoin, despite the persistent volatility of the short-term market conditions.
In the short term, $58,200 is a significant resistance level for Bitcoin, which it has failed to break above in the last week. A successful breach of this resistance might open the door for a follow-up test at $60,200. Based on technical analysis, there is a significant positive momentum seen with Bitcoin at present. The 100-day Simple Moving Average (SMA) is getting closer to a bullish upward trajectory, suggesting a possible higher trend.
