Germany’s Aggressive Bitcoin Selling Spree Sparks Heavy Market Turbulence
The German government’s ongoing sales of Bitcoin have sparked significant market turbulence, with the cryptocurrency’s price fluctuating between $54,400 and $58,200 in the past 12 hours. This volatility coincides with the government’s aggressive selling of its Bitcoin holdings, which has persisted for several weeks.
Bitcoin’s price volatility in the past 12 hours
As of July 8, the German government held approximately 23,788 Bitcoin, valued at $1.32 billion - less than half of its holdings before the selling began. The most recent sale involved 5,200 Bitcoin, worth $293.76 million, according to Arkham Intelligence data.
The selling activity has significantly reduced futures contracts, with 50,000 Bitcoin exiting futures open interest in the past few days. Currently, around 475,000 Bitcoin remain in open interest contracts, similar to levels seen in mid-May, according to Coinglass.
Concurrently, spot selling has also intensified, indicating robust selling pressure in the market, according to Glassnode.
Futures contracts decline
This combination of government sales, spot selling, and closing of futures contracts is playing a significant role in the current market dynamics, contributing to the observed volatility in Bitcoin prices.
Stablecoins Outperform as $18B Gets Wiped Out From Crypto in June: JPMorgan
The total crypto market cap declined by 8% in June, with most of the ecosystem experiencing a contraction in market capitalization, according to JPMorgan. However, stablecoins outperformed the rest of the crypto ecosystem, with their market cap remaining flat to slightly higher.
Stablecoin market cap remains steady
Bitcoin miners were also an outlier, with the total market cap of publicly listed bitcoin miners growing 19% as these companies benefited from gains due to AI-related power use cases.
Miner market cap grows
The bank noted that daily spot crypto trading volumes fell as much as 18% versus the previous month, and it now appears that March 2024 was the peak for the crypto ecosystem in the current cycle both from a valuation and volume perspective.
Germany Still Holds $2.2B Worth of Bitcoin, Blockchain Data Show
Germany still holds 29,286 BTC worth $2.2 billion, according to Arkham Intelligence. The potential selling pressure equates to 9% of bitcoin’s 24-hour trading volume.
Germany’s Bitcoin holdings
The German government’s Bitcoin sales and Mt. Gox’s reimbursements have recently shaken up the crypto market, and the drama may not be over yet. Germany’s Bitcoin sales amount to a strategic blunder that puts the country at a disadvantage in geopolitical terms.
Bitcoin market turbulence
In conclusion, the German government’s aggressive Bitcoin selling spree has sparked significant market turbulence, with the cryptocurrency’s price fluctuating wildly. The selling activity has reduced futures contracts and intensified spot selling, contributing to the observed volatility in Bitcoin prices. Meanwhile, stablecoins and miners have outperformed the rest of the crypto ecosystem, and Germany still holds a significant amount of Bitcoin that could further impact the market.
