Spot On Chain: The German government’s sale of BTC was a one-off event, and the withdrawal from CEX may be due to the realization that spot sales were inappropriate

Spot On Chain published an analysis that the German government holds about $2 billion in Bitcoin, which was seized from the operators of Movie2k.to, an active movie piracy website in 2013. They started selling these assets 20 days ago (June 18, 2024) and have recovered 7,106 Bitcoins (about $412 million), most of which were recovered from CEX at a lower price. Usually institutions trade through the over-the-counter market to avoid causing panic and creating a negative impression in the market, but the German government chose to transfer directly to CEX, causing market panic and large fluctuations, and the subsequent withdrawal of BTC from the exchange may indicate that they realized that spot sales were not a good idea, thus turning to over-the-counter sales, which seems reasonable considering that the German government began to transfer Bitcoin to Flow Traders and Cumberland, which usually handle over-the-counter transactions. However, the continued flow of funds in and out of CEX indicates that either market panic is intentional or the internal operation of the German government department handling the sell-off is chaotic. In fact, BTC's daily trading volume is as high as $36 billion, so the German government's sell-off is relatively small, and the sharp drop in prices may be due to the psychological impact of on-chain fluctuations on traders. Spot On Chain believes that this should be a one-time event and will not affect the overall bullish trend of Bitcoin in 2024. According to its AI model prediction, Bitcoin may still reach $100,000 by the end of this year, and the current market volatility is only temporary.