German gov’t could shift towards OTC sales: Spot On Chain

On-chain analytics platform Spot On Chain has reported on the German government's recent Bitcoin transactions. According to the report, Germany deposited 9,983 BTC ($5.91 billion) into centralized exchanges and transferred 19,521.7 BTC ($1.14 billion) to market makers like Flow Traders. It later withdrew 7,106 BTC ($4.12 billion) from these exchanges. Despite typically large institutions opting for over-the-counter (OTC) trading to minimize market impact, the German government chose exchanges, potentially aiming to influence the market or reflecting internal miscoordination. Following market turbulence and price drops triggered by these transactions, the government seems to have recognized the drawbacks of this strategy, potentially shifting focus towards OTC sales. This is evidenced by Germany's BTC transfer to B2C2, Flow Traders and Cumberland. The scale of the German government's transactions is minor relative to the daily BTC volume of $36 billion. However, the psychological effects of these visible on-chain movements have significantly influenced market dynamics, exacerbated by frequent media coverage. This has contributed to market anxiety, with market makers possibly using this news to drive prices.