Germany has officially exhausted its on-chain Bitcoin reserves, marking the end of a bearish narrative that has been looming over the crypto market. According to Arkham Intelligence, the German government’s Bitcoin wallet balance now stands at zero, with the latest outflows totaling 4925 BTC ($282.45 million).
This move by the German government comes at a time when on-chain indicators are suggesting that a local bottom for Bitcoin may be near. The government recently received back 4169 BTC from exchanges like Kraken, Coinbase, and Bitstamp, only to send back 2700 BTC to these platforms shortly after. Further transactions saw the government sending BTC to Kraken, an unidentified address, and a likely institutional deposit or over-the-counter trading service.
By the end of the day, Germany had sent all of its remaining 3846.05 BTC ($223.81 million) to the institutional trading desk and Flow Traders, a proprietary trading firm. This significant selloff by the German government has sparked mixed reactions from the crypto community, with some celebrating the completion of the sale while others criticize the decision to exchange Bitcoin for fiat currency.
Notable figures in the crypto space, such as Reflexivity Research co-founder Will Clemente and MicroStrategy’s executive chairman Michael Saylor, have weighed in on Germany’s Bitcoin selloff. Clemente described the move as a potential strategic blunder, while Saylor emphasized the importance of holding onto Bitcoin rather than selling it.
Despite the market fears and price volatility surrounding the recent selloff, on-chain analysts believe that Bitcoin’s price is now at a healthy entry point for new investors. Institutional investors have been accumulating BTC at a rapid pace, indicating a strong interest in buying the dip. Additionally, the mass selling of coins by short-term holders suggests that market fear may have peaked, paving the way for a potential price correction.
Overall, the completion of Germany’s Bitcoin selloff has brought a mix of excitement and concern within the crypto community. As the market continues to evolve, it will be interesting to see how this development impacts Bitcoin’s price and investor sentiment moving forward.