German Government Bitcoin (BTC) Reserves On The Brink Of Exhaustion As BlackRock Steps In

In recent weeks, German authorities have stepped up the sale of significant amounts of Bitcoin (BTC), resulting in increased selling pressure

German authorities have sold off a significant portion of their Bitcoin (BTC) holdings in recent weeks, ramping up the selling pressure on the world’s leading cryptocurrency, which has seen a price decline of over 20% in the past month.

The selling spree began last month with the German government selling seized BTC from a wallet belonging to the country’s Federal Criminal Police Office, also known as the Bundeskriminalamt (BKA).

The BKA sold 900 BTC in June, valued at around $52 million at the time, as part of a massive haul seized from a now-defunct movie piracy website. The government then sold an additional 3,000 BTC, worth approximately $172 million, followed by another sale of 2,739 BTC this week, valued at around $155 million.

According to the latest data from blockchain analytics firm Arkham, the German government’s wallet sold over 5,000 BTC on Wednesday, with only 15,552 BTC, valued at around $892 million, remaining in their stash, indicating a sell-off of more than 80% of their total stash of 50,000 BTC.

However, despite the massive sell-off, BTC managed to maintain its price above the crucial 6-month support level of $50,000, highlighting resilience in the face of the massive selling pressure witnessed in the market over the past 30 days.

The recent pullback from all-time high levels has been viewed by many investors, including institutional asset managers, as a buying opportunity, contributing to the slight recovery in Bitcoin prices over the past few days.

“The German government is selling, but Blackrock is buying,” Arkahm stated in a social media post.

Recent data indicates that the Bitcoin ETF market activity saw a net addition of 4,862 BTC on Wednesday, valued at $281 million, which served to lessen the impact of the daily sell-off by the German authorities.

A breakdown of the institutional buying activity on Wednesday by Arkham. Source: Twitter

Of note, BlackRock, which is one of the largest ETF issuer by assets under management, increased its BTC holdings today by 2,095 BTC (worth $121.16 million), bringing its total holdings to 312,565 BTC (worth $18.08 billion), playing a significant role in stabilizing and supporting the Bitcoin price.

At the time of writing, the largest cryptocurrency on the market is trading at $57,430, almost unchanged from Tuesday’s price with a slight drop of 0.4% in the last 24 hours. However, BTC still records a price drop of over 22% from its all-time high of $73,700 reached in mid-March.

A view of BTC price action over the past year, with institutional buying activity highlighted on the chart. Source: Material Indicators / Twitter

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