Cryptocurrency wallets, marked by Arkham Intelligence as the custody of German government, sold 50% of available BTC resources. In general, market participants are waiting for this painful program to end soon and relive selling pressure. However, Bitcoiners are not sure about the real meaning of this process for BTC as an asset.
Germany's Bitcoin (BTC) selling saga hits 50% milestone
Once Germany moved another stash of 4,700 Bitcoins (about $270 million in fiat equivalent), it almost reached 50% of its net holdings. As such, the potential selling impulse is getting closer to exhaustion. Such calculations were shared by CryptoQuant communty analyst JA Maartun (@JA_Maartun in X).
As noted by the analyst, three weeks ago, on June 19, 2024, Germany moved the first batch when the price was around $67,000. Since then, these wallets have been moving large portions of BTC, causing market panic triggered by the potential selling pressure.
The real effects of huge BTC amounts released onto the markets and the panic caused by this process look like the illustration of a "chicken-and-egg problem":
This has resulted in increased selling pressure and, perhaps more significantly, negative sentiment among other investors, further exacerbating the selling pressure.
Meanwhile, this process cannot last forever. Germany has only 22,845 Bitcoins (BTC) left to sell. As such, the worst might be in for Bitcoin (BTC) bulls.
As of printing time, Bitcoin (BTC), the largest cryptocurrency, is changing hands at $57,240 on major spot exchanges, up 2.24% up in the last 24 hours.
Is Bitcoin (BTC) failing test?
Together with the hotly anticipated Mt. Gox compensation program, the selling by German government wallets is interpreted as two of the most powerful bearish catalysts for the BTC price in early Q3, 2024.
However, it is still unclear whether Bitcoin (BTC) looks strong in a struggle with such pressure. Some analysts noticed that it only lost 17% since the selling activities started.
At the same time, analyst Jacob Kinge recalls that the activity so far looks like "pocket change" for Germany, while Bitcoin (BTC) lost 25% compared to its ATH. This can be an indicator of very tiny real demand for BTC in this stage of the cycle, the analyst warns.
Yuri Molchan
Denys Serhiichuk