Bitcoin News: Germany Still Possesses $2.2 Billion in Bitcoin
According to Arkham Intelligence, Germany still possesses 29,286 BTC, valued at $2.2 billion. Since mid-June, the country has been gradually reducing its Bitcoin holdings. What could be the impact of this?
Bitcoin News: Germany Still Possesses $2.2 Billion in Bitcoin
Germany has been a focal point in the crypto world lately, thanks to its Bitcoin (BTC) sales and Mt. Gox reimbursements, and the story isn't over yet.
According to reports, Germany, the largest economy in the Eurozone, still possesses 39,826 BTC, valued at $2.2 billion. This substantial stash represents nearly 9% of BTC's 24-hour trading volume of $25.3 billion, hinting at possible ongoing fluctuations in prices.
Earlier this year, the German Federal Criminal Police Office (BKA) confiscated 49,857 BTC from the operators of Movie2k.to, a privacy website that ceased operations in 2013. Since mid-June, the government has sold off more than 10,000 BTC, exerting downward pressure on the cryptocurrency's current market price.
How has the Bitcoin Price Moved Recently?
As of now, Bitcoin is priced at $57,209, with a trading volume of $88.86 billion over the last 24 hours. Its market capitalization stands at $1.13 trillion, and it holds a market dominance of 53.00%. The price of BTC has decreased by -0.54% in the past day.
Bitcoin reached its peak price on March 14, 2024, hitting an all-time high of $73,628. Its lowest recorded price was on July 17, 2010, at an all-time low of $0.05. Since its peak, the lowest price has been $53,761 (cycle low), and the highest has been $58,398 (cycle high). Currently, market sentiment predicts a bearish trend for Bitcoin, with the Fear & Greed Index indicating a level of 28 (Fear).
The circulating supply of Bitcoin is currently 19.70 million BTC out of a maximum supply of 21.00 million BTC. The annual supply inflation rate is 1.49%, resulting in the creation of 288,478 BTC in the last year.
What could be the impact of this on the Bitcoin Price?
The recent activities involving Germany's Bitcoin holdings and sales, alongside the significant seizures by the German authorities, are poised to impact Bitcoin's price dynamics in several ways. With Germany holding a substantial 39,826 BTC, valued at $2.2 billion, their actions in selling portions of this reserve could introduce periodic selling pressure into the market. This influx of supply relative to Bitcoin's daily trading volume, which stands at $25.3 billion, suggests that these sales could influence short-term price volatility.
Moreover, the confiscation of 49,857 BTC earlier this year by the German Federal Criminal Police Office, with subsequent liquidations of over 10,000 BTC since mid-June, further underscores potential downward pressure on Bitcoin's market price. Such large-scale sell-offs, especially from government entities, have historically correlated with temporary price dips as market participants adjust to increased supply.
Looking ahead, market sentiment remains cautious, as indicated by a bearish outlook and a Fear & Greed Index reading of 28. Investors and traders are likely to monitor these developments closely, considering the ongoing impact of governmental actions on Bitcoin's price stability. However, the long-term bullish fundamentals of Bitcoin, including institutional adoption and scarcity-driven demand, may counterbalance short-term volatility caused by these regulatory and enforcement-related activities in Germany and globally.
