In recent weeks, German authorities have stepped up their offer of significant amounts of Bitcoin (BTC), resulting in increased selling pressure on the world’s largest cryptocurrency, which has fallen more than 20% in the past month.
Bitcoin reserves on the verge of exhaustion
The selling spree began last month when the German government began selling Bitcoins seized from a wallet operated by the country’s Federal Criminal Police, commonly known as the Bundeskriminalamt (BKA).
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BKA sold 900 BTC in June, valued at around $52 million at the time, which were part of a huge load seized from a now-defunct movie piracy website. The government later sold another 3,000 BTC worth approximately $172 million, followed by another sale of 2,739 BTC worth $155 million this week.
Adding to these numbers, the latest data Blockchain analytics firm Arkham reveals that the German government’s wallet sold over 5,000 BTC on Wednesday, leaving just 15,552 BTC in its stash worth around $892 million, representing a sale of over 80% of its entire stash of 50,000 seized BTC.
Price remains steady as BlackRock takes action
Despite the significant sale offBitcoin has managed to hold its price above the crucial 6-month support level of $50,000, signaling resilience in the face of the massive selling pressure witnessed in the market over the past 30 days.
Furthermore, the recent pullback from all-time highs was seen by many investors, including institutional asset managers, as a buying opportunity, contributing to the slight recovery in Bitcoin prices in recent days. Akrham even stated in a social media posts“The German government is selling, but Blackrock is buying.
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Recent data shows that on Wednesday, Bitcoin ETF market activity saw a net addition of 4,862 BTC valued at $281 million, mitigating the impact of the daily liquidation by German authorities.
BlackRock, for example, one of the largest ETF issuers by assets under management, today increased its BTC holdings by 2,095 BTC (worth $121.16 million), bringing its total holdings to 312,565 BTC worth $18.08 billion, playing a significant role in stabilizing and supporting Bitcoin’s price.
At the time of writing, the largest cryptocurrency on the market is trading at $57,430, almost unchanged from Tuesday’s price, with a slight drop of 0.4% over the past 24 hours. However, BTC is still down more than 22% from its all-time high of $73,700, reached in mid-March.
Featured image of DALL-E, chart from TradingView.com