In a significant move, the German government has commenced another phase of its Bitcoin liquidation, offloading approximately 3,100 BTC, valued at an estimated $178 million, within a mere hour on July 9.

Government BTC Transfers and Withdrawals

Concurrently, the administration also extracted around 1,700 BTC, equating to $91.78 million, from the Bitstamp exchange, thus consolidating its BTC reserves. Presently, an additional 3,107 BTC has been relocated from the primary government holdings, likely in anticipation of an imminent sale.

The principal government BTC wallet currently holds around 26,000 BTC, with an approximate value of $1.5 billion. Meanwhile, the liquidation-specific wallet contains 4,800 BTC, valued at $276.61 million.

Continuous BTC Outflow

Since 7:30 am UTC on July 9, the government has moved a total of 3,100 BTC, distributing 2,500 BTC to the B2C2 Group, 400 BTC to the Kraken exchange, and 200 BTC to an undisclosed wallet. This follows a previous substantial sale of $900 million worth of BTC on July 8, signaling ongoing plans to systematically liquidate its remaining $1.5 billion in Bitcoin assets.

Despite the extensive sell-off, the 16,309 BTC liquidated is now worth over $930 million, reflecting sustained investor confidence at this price level.

Read more: Crypto Liquidations Skyrocket to $580M Amid Bitcoin’s 8% Tumble, Altcoins Follow Suit

Macroeconomic Influences on BTC

Economic forecasts from Wall Street indicate a 72% likelihood of the US Federal Reserve reducing interest rates in September. Such a rate cut could stimulate further investment in BTC, as lower interest rates generally enhance risk-on asset attractiveness.

This broader macroeconomic trend significantly impacts BTC, which is still perceived as a high-risk asset, unlike traditional safe-havens such as gold that attract liquidity during geopolitical unrest.

Market Sentiment and Miner Activity

The ongoing BTC sell-off coincides with reduced activity among BTC miners and reserve sales, suggesting a potential market sentiment bottoming. Bitfinex analysts noted this local bottom in market data from July 6 and 7, even as the Mt. Gox trustee commenced BTC and Bitcoin Cash (BCH) repayments.

Indicators of a BTC Rebound

Despite these substantial sell-offs linked to the German government and Mt. Gox creditor repayments, several indicators suggest a potential BTC rebound. BTC recently hit its lowest point since late February, dropping to $53,550 before rebounding to current levels around $57,600.