Spot On Chain: The German government's sale is a "one-time event" and will not affect the overall bullish trend of Bitcoin

ChainCatcher news, according to Spot On Chain analysis, the German government holds approximately $2 billion in Bitcoin, which was seized from the operators of the movie piracy site Movie2k.to that was active in 2013. They began selling these assets 20 days ago (on June 18, 2024) and have currently recovered 7,106 Bitcoins (approximately $412 million), most of which were recovered from CEX at lower prices. Typically, institutions trade through over-the-counter markets to avoid causing panic and creating a negative impression on the market, but the German government's choice to directly transfer to CEX has led to market panic and significant volatility. The subsequent recovery of BTC from exchanges may indicate that they realized spot sales are not a good idea, thus shifting to over-the-counter sales. Considering the German government has started transferring Bitcoin to Flow Traders and Cumberland, which usually handle over-the-counter transactions, this seems reasonable.

However, the continuous inflow and outflow of funds from CEX suggest either an intentional creation of market panic or internal operational chaos within the department of the German government handling the sell-off. In fact, the daily trading volume of BTC reaches as high as $36 billion, so the German government's sell-off volume is relatively small, and the significant price drop may be due to on-chain volatility affecting traders psychologically.

Spot On Chain believes this should be a one-time event that will not affect the overall bullish trend of Bitcoin in 2024. According to its AI model predictions, Bitcoin may still reach $100,000 by the end of this year, and the current market volatility is only temporary.