Germany’s recent surge in selling Bitcoin has caused a lot of chaos in the market. Bitcoin’s price has been all over the place, going from $54,400 to $58,200 in just the past 12 hours. This instability seems to be linked to the German government’s decision to sell off a huge chunk of their Bitcoin holdings.
Before this selling spree, the German government had about 23,788 Bitcoin, valued at around $1.32 billion. But now, they have less than half of that amount left. Their most recent sale involved 5,200 Bitcoin, worth nearly $300 million. This has had a big impact on the futures market, with 50,000 Bitcoin leaving futures open interest in just a few days. Currently, there are about 475,000 Bitcoin left in open interest contracts, similar to levels we saw back in mid-May.
Not only are futures contracts being affected, but spot selling has also ramped up. This shows that there is a lot of selling pressure in the market right now. All of this selling activity, both from the government and in the spot market, is contributing to the wild price swings we are seeing in Bitcoin.
It’s important to keep an eye on these developments as they are playing a major role in the current state of the market. The combination of government sales, spot selling, and futures contracts closing is creating a lot of uncertainty and volatility in the Bitcoin market. Investors should proceed with caution and stay informed on how these factors continue to shape the crypto landscape.