German Government Now Holds Zero Bitcoin, Bullish Sentiments Return

On-chain data reveals that the German government has run out of Bitcoin, sparking a return of bullish sentiments.

Germany is a very friendly jurisdiction toward cryptocurrencies. It allows Bitcoin and other digital currencies for legal transactions and has clear rules for crypto businesses. The government has strong anti-money laundering policies to prevent illegal activities involving cryptocurrencies.

As of late Thursday, the German government had only 4,925 BTC ($282.45 million) left in its wallets, down from 50,000 BTC as recently as June 19. The BTC was seized from the movie piracy website Movie2k in the early months of this year.

Early Friday, the government received 4,169 BTC from exchanges like Kraken, Coinbase, and Bitstamp but quickly sent back 2,700 BTC by 5:00 am ET. By 10:00 am, they transferred another 2,300 BTC to Kraken, an unidentified address, and an institutional trading service.

Finally, at around 2:35 pm, the government sent all of its remaining 3,846.05 BTC ($223.81 million) to an institutional trading desk and Flow Traders, a proprietary trading firm. As a result, the German government now holds zero Bitcoin.

According to Blockchain intelligence firm Arkham, on chain data showing that Germany holds no BTC.

Under pressure from the German government’s Bitcoin sell-off and combined with minimal demand growth from Bitcoin whales and a lack of stablecoin liquidity, panic selling gripped the market, leading to Bitcoin’s price dropping to $53,900 last Friday, marking its largest pullback from the March high of $73,700.

Some Bitcoin enthusiasts noted that this represents a significant bullish situation for the Bitcoin market, as the intense panic selling appears to have subsided.

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