The German government continues with its selling spree after sending an additional $27M worth of Bitcoin to the Coinbase and Bitstamp cryptocurrency exchanges.
On-chain transactions on the Arkham Intelligence dashboard show that on July 8, the German government wallet address moved 250 BTC to Coinbase and another 250 BTC to Bitstamp.
The German government also moved another 500 BTC to an unknown wallet address, which could belong to an Over-The-Counter (OTC) trading desk.
The recent selling spree on this wallet address comes despite criticism from the German government. As reported by ZyCrypto, German legislator Joana Cortar believes the government should hold BTC as a strategic reserve currency instead of selling it.
Market Fear Resurges, But Analyst Predicts Short-Lived Impact
The selling activity has rekindled the fear that gripped the crypto market last week, causing significant dips.
According to the market intelligence platform Santiment, the market is showing “retraces to bring fear back on the menus.”
However, analyst @DaanCrypto on X believes this fear will be short-lived. The German government has been gradually and rapidly reducing its Bitcoin stash. Since it started selling, it has dumped nearly $1 billion in BTC into the market. The government’s wallet address currently holds $2.2 billion, a notable decline from the original $3 billion.
The analyst noted that the market reaction to the government selling activity will change with all the selling. He stated that the recent sale barely moved the market, given that Bitcoin still holds the $57,000 price.
“The way price reacts to these things will be very key going forward. If the price stops going down, then people will also stop caring, and the impact of these sells will also diminish with proper upside momentum,” the analyst said.
The analyst further says the current trend differs from what happened in the last few weeks, where the fear of rising supply caused by government selling activity triggered widespread selling pressure.
Bitcoin Holds Steady
Bitcoin’s current performance shows a positive trend despite government dumping. At the time of writing, BTC was trading at $57,586 after a slight 0.4% gain in 24 hours.
The largest cryptocurrency by market cap recently closed the best hourly candle gain since April 19, showing a possible re-entry by bulls into the market.
Despite the green candles, according to analyst @ali_charts, BTC still needs to close and hold above $61,000 for the bull market to resume. The largest crypto has been down by more than 16% in the last month.
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