In what is being hailed as a significant victory for the Bitcoin market, the German government has officially depleted its Bitcoin reserves after holding 50,000 BTC in its wallet just months ago.
Bitcoin Wallet Now Empty After Massive Selling Spree
Data from market intelligence firm Arkham shows that the German government recently transferred the remainder of its 3,846.05 BTC stash worth approximately $223 million to Flow Traders and 139Po, likely for over-the-counter (OTC) services.
As a result, Arkham’s platform reveals that the government’s wallet now stands empty, with zero BTC remaining, as seen in the image below.
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Interestingly, data researcher Jay analyzed the German government’s selling activities and found that Germany sold a staggering 42,000 BTC in just one week, averaging 250 BTC per hour over 168 hours.
Earlier this year, the German police made headlines when confiscated 50,000 Bitcoin worth $2.17 billion in the country’s most extensive cryptocurrency seizure.
The seizure occurred in January, and the Bitcoin was taken after the suspects voluntarily transferred the funds to official wallets provided by the BKA (Bundeskriminalamt), the German Federal Criminal Police Office.
This consistent selling pressure from the German government was notorious for contributing to the significant 25% price retracement experienced by the largest cryptocurrency, resulting in a low of $53,500 not seen since February.
Sell Pressure, Support Levels, And Investor Sentiment
Crypto analyst SkewA commented on this recent development, noting that in the future, market observers will closely monitor the passive flow of Bitcoin, particularly for signs of reduced supply.
According to the analyst, this will serve as a gauge to determine if the market has effectively absorbed the recent sell pressure and highlighted the $60,000 level as the current market supply zone, with the potential for a retest of this crucial level.
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On the other hand, market expert Dann Crypto Trades notes that Bitcoin is currently attempting to regain support from the May lows.
Price action has been volatile in this range, and Dann believes that a true higher timeframe reversal will only occur once the “green zone” above $59,000 is successfully recaptured. The analyst sees the $56,500 level as crucial support for BTC’s upside momentum in the short to medium term.
Meanwhile, crypto analyst Ali Martinez has identified a bullish sentiment surrounding Bitcoin’s outlook, noting that the accumulation trend score indicates a shift in investor sentiment after an extended distribution phase since April.
At the time of writing, BTC trades at $57,600, remaining in its trading range between this level and the $59,000 zone for the past two days.
Featured image from DALL-E, chart from TradingView.com
