The German government has recently made significant Bitcoin transfers to various exchanges and market makers, as reported by Arkham, a blockchain analytics platform. Noteworthy transactions include sending 133.722 Bitcoins to market maker Cumberland DRW, 150 Bitcoins to Kraken, and 1,000 Bitcoins to B2C2 Group. There were also transactions of 300 Bitcoins each to Coinbase and Bitstamp, along with 1,000 bitcoins to market maker Flow Traders.
These transactions are part of a series that saw 250 bitcoins sent to Bitstamp and Coinbase previously, 500 bitcoins moved to an unlabeled address which may be associated with an OTC service or another exchange.
Criticism from Bundestag Members
Criticism has arisen from Bundestag members in Germany regarding the government's decision to sell a substantial amount of Bitcoin. Joana Cotar, a Bundestag representative and cryptocurrency advocate, has been vocal in opposing these actions. Cotar suggests that holding Bitcoin as a strategic reserve currency would offer more benefits and questions the government's strategy of selling state-owned Bitcoin without a comprehensive plan.
Cotar's concerns mirror a broader discussion on Bitcoin's role in national reserves, a conversation also present in the United States. She argues that retaining Bitcoin could diversify Germany's treasury assets, stimulate innovation, and serve as a hedge against inflation.
Market Impact
Despite the significant sell-off, Bitcoin's price exhibited resilience, experiencing a minor drop of less than 0.9% in the past 24 hours. The transactions continue, with over 3,000 Bitcoins moved within one hour.
The government's wallet holds 35,488 Bitcoins worth over $2 billion, with an inflow of 4,340 Bitcoins, over 3,000 of which have been transferred to exchanges or undisclosed addresses.
These ongoing transfers coincide with broader market sell pressures, influenced by recent announcements from the defunct crypto exchange Mt. Gox. Nobuaki Kobayashi, the exchange's trustee, has commenced the repayment of Bitcoin and Bitcoin Cash debts, impacting the market.
