German Govt Considers OTC Bitcoin Sales After Market Impact

Bitcoin’s price has been declining since June. This is partly due to the German government's sale of Bitcoin seized from Movie2k.to operators. This began on June 18, 2024. On July 5, Bitcoin’s price fell below the critical $54,000 support level. But it rebounded to $57,683. While these transactions are minor compared to Bitcoin's daily trading volume of $36 billion. They have significantly influenced market sentiment. This increased anxiety among traders and impacted prices.

The German government's notable Bitcoin transactions have raised the possibility of a shift towards over-the-counter (OTC) sales. Spot On Chain reports that 19521.7 BTC ($1.14 billion) were transferred to wallets likely controlled by B2C2, Flow Traders and Cumberland. This hints at potential OTC transaction. The government received 7106 BTC ($412 million) back from centralized exchanges (CEXs) at lower price, indicating a strategic shift. Currently government holds 27,461 BTC ($1.55 billion) having sold almost half of their initial Bitcoin holdings.

Why does this shift matter to crypto experts? Large institutions usually prefer OTC trading to minimize market impact yet the German government initially used exchanges. This caused significant market turbulence and a drop in Bitcoin prices. Could this new strategy stabilize the market?

Spot On Chain’s predictions, utilizing Google Cloud's Vertex AI forecast Bitcoin prices between $56,000 and $70000 from May to July 2024. There is a 48% chance of prices dipping below $60,000. For the second half of 2024 there is 63% likelihood of Bitcoin reaching $100,000 driven by expected Federal Open Market Committee rate cuts in December 2023. For 2025, there is 42% chance of surpassing $150000, rising to 70% for the entire year.

In summary the German government's potential shift to OTC sales could stabilize Bitcoin’s market impact, while Spot On Chain's forecasts suggest a positive long-term outlook. How will these developments influence your trading strategies?