German Government's Crypto Sell-Off: Potential Shift to OTC Sales?

IconCryptoNewsTerminal Staff08 Jul, 2024

cryptonews.jpg

German Government's Crypto Sell-Off: Potential Shift to OTC Sales?

SpotOnChain's report analyzed the German government's recent substantial Bitcoin (BTC) outflow, raising questions about the transaction. The government deposited 9,983 BTC ($591 million) to a centralized exchange and transferred 19,521.7 BTC ($1.14 billion) to market makers. However, it then received 7,106 BTC ($412 million) back from the exchange. The report highlights the unusual decision to sell through exchanges rather than over-the-counter (OTC) markets, which is typically preferred by governments and large institutions to avoid market panic. SpotOnChain suggests a potential shift in strategy to OTC sales, supported by the transfer to market makers like Flow Traders and Cumberland. Alternatively, the report notes the possibility of intentional market panic or confusion within the government department handling the funds. Despite the relatively small size of the sale, it likely had a significant psychological impact on BTC prices, as market makers may have been influenced by news of the government's involvement.

Related News