Bitcoin Price May Have Reached Its Lowest Point as German Government Exhausts Bitcoin Supply

German Government's Bitcoin Wallet Now Empty

The German government's Bitcoin wallet is now empty, only three weeks after it began selling. This has resulted in an additional $222 million worth of selling pressure, which has pushed the price of Bitcoin below $60,000 in the past week. However, there are indications that this could be the bottom of the price drop, with a surge in Bitcoin ETF buying suggesting the start of a reaccumulation phase, as reported by CoinTelegraph.

Details of the Liquidation

On July 12, the German wallet made its final transfers, sending 800 BTC to the Kraken exchange, 500 BTC to a wallet known as "bc1q", and another 1,000 BTC to a wallet referred to as "139p". This was followed by the liquidation of the remaining 3,094 Bitcoin. According to Arkham Intel, the German government has now exhausted its entire balance of 49,860 BTC, worth $2.90 billion, which it had sent to exchanges and market makers over the past three weeks.

Origin of the Bitcoin

The German government began selling Bitcoin in mid-June, having held nearly 50,000 BTC since February 2024. It is believed that these funds were seized from the operator of the pirate movie website Movie2k.

Potential Impact on Bitcoin Price

The cessation of the German government's Bitcoin selling could help the cryptocurrency find its local price bottom. Technical analysis using the Wyckoff method suggests a potential price bottom and a recovery above the psychological mark of $60,000. Other indicators, such as the Coinbase Premium, are also pointing to a local price bottom. This premium measures the price differences between Bitcoin on Coinbase, which is largely used by US investors, and Binance. It signals US demand for Bitcoin compared to the rest of the world. However, to halt further bearish momentum, Bitcoin's price needs to remain above the $56,750 mark.

Thoughts on the Matter

This development raises intriguing questions about the influence of government actions on the price of Bitcoin. With the German government's Bitcoin selling spree over, will we see the price of Bitcoin recover and rise above the $60,000 mark? It's a fascinating situation that warrants close observation. What are your thoughts on this matter? Feel free to share this article with your friends and engage in a discussion. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.