Germany Holds $2.17B in Bitcoin Despite Selloffs

Key takeaways:

• Germany's BTC holdings remain substantial, valued at $2.17 billion.
• Bitcoin's spot price has declined nearly 18.95% in the past month, with a 10.97% drop in the past seven days alone.
• The German government recently offloaded 1,000 BTC, adding to the ongoing selling spree.
• Despite the selloff pressure, BTC experts remain optimistic about Bitcoin's price recovery.

Germany's BTC Stash Continues to Raise Selloff Concerns and Price Impact

On July 8, Arkham Intelligence reported that Germany holds 38,826 BTC, worth approximately $2.17 billion. 

This significant reserve has sparked widespread concerns about potential large-scale liquidations, which could further worsen Bitcoin's price volatility. According to Arkham Intelligence, the German government recently transferred 250 BTC (worth $13.95M) to Bitstamp and Coinbase. 

Another tranche of 500 BTC was moved to an unlabelled address, possibly linked to a centralized exchange or OTC service.

Germany’s BTC wallet transferred another 1000 BTC an hour ago.

The German government's recent BTC transfers continue a trend that started in mid-June, when it liquidated over 10,000 BTC, thereby exerting major downward pressure on the cryptocurrency's market value.

Earlier this year, the German Federal Criminal Police Office (BKA) seized 49,857 BTC from the operators of Movie2k.to, a piracy website that was last active in 2013 and is now being sold. 

Bitcoin's price has dropped 18.95% to $56,000 in four weeks, according to CoinMarketCap data. In the past seven days, it fell 10.97% due to pressures from Germany's aggressive BTC sales. 

BTC price is down by 10.97% in the past seven days.

Meanwhile, the extensive selloff by the German government has sparked reactions from legislators and experts. 

Joana Cotar, a German Bundestag member, criticized the BTC liquidations without a comprehensive strategy. She advocated for retaining Bitcoin as a strategic reserve currency, citing its limited supply and potential long-term benefits.

Statt #Bitcoin als strategische Reservewährung zu halten, wie es in den USA bereits debattiert wird, verkauft unsere Regierung im großen Stil. Ich habe @MPKretschmer, @c_lindner & @Bundeskanzler @OlafScholz darüber informiert, warum dies nicht nur nicht sinnvoll, sondern… pic.twitter.com/v9FpzmfLbp

— Joana Cotar (@JoanaCotar) July 4, 2024

Blockware Intelligence echoed this sentiment, warning that selling Bitcoin for easily printable fiat currency is a strategic mistake, given Bitcoin's limited supply and potential for long-term value appreciation.

BTC’s Bullish Sentiment Rises Amids Current Price Decline 

So far, Germany's BTC transfers have sparked a price drop, but many crypto traders see this as a buying opportunity. They're holding onto BTC and expecting a price recovery and a new bullish trend.

Last week, several Bitcoin experts provided insights into the current price decline of BTC. 

Crypto Wealth offered a technical and detailed analysis of the BTC market. He provided an Elliott Wave Theory chart illustrating the relationship between time and price for BTC.

Time and price in one chart for $btc

As I believe we are in wave 5 the horizontal lines are the price levels which will be restricted by the price channel for the final top of #btc…

The vertical lines are the timings of wave 5 in relation to the length of wave 3..#crypto pic.twitter.com/WU8ST1WfsB

— 𝐂𝐫𝐲𝐩𝐭𝐨 𝐖𝐞𝐚𝐥𝐭𝐡 (@AskCryptoWealth) July 6, 2024

According to Elliott Wave Theory, market prices typically move in a series of 5 Waves. These Waves can be further subdivided into smaller waves, starting with the Impulse Waves (1,3,5), which move with the main trend; the Correction Waves (2,4), which go against the main trend; and Wave 5, the final Wave of the trend.

Crypto Wealth analysis indicates that the BTC market is currently in Wave 5.

BTC market is in wave 5

He explained that the horizontal lines on the chart represent price levels, which will be constrained by the price channel for the final top of BTC. The vertical lines indicate the timing of the wave, which is expected to last as long as Wave 3. This provides a rough estimate of the time frame for potential price movements.

This means the BTC price may experience a corrective phase or consolidation period. Therefore, while Wave 5 itself may see further price gains as it completes the trend cycle, it often precedes a larger correction or a change in trend direction.