The German Government is now out of Bitcoin.

The German Government just sent 3846.05 BTC ($223.81M) to Flow Traders and 139Po (likely institutional deposit/OTC service).

German government runs out of Bitcoin, sparking bullish return

The German government has fully sold its Bitcoin (BTC) holdings, according to on-chain data firm Arkham Intelligence.

As of late Thursday, the German government had only 4,925 BTC ($282.45 million) left in its wallets, down from 50,000 BTC as recently as June 19. The BTC was seized from the movie piracy website Movie2k in the early months of this year.

Early Friday, the government received 4,169 BTC from exchanges like Kraken, Coinbase, and Bitstamp but quickly sent back 2,700 BTC by 5:00 am ET. By 10:00 am, they transferred another 2,300 BTC to Kraken, an unidentified address, and an institutional trading service.

Finally, at around 2:35 pm, the government sent all of its remaining 3,846.05 BTC ($223.81 million) to an institutional trading desk and Flow Traders, a proprietary trading firm. As a result, the German government now holds zero Bitcoin.

According to on-chain data, the German government now holds 0 BTC.

BREAKING: The German Government is now out of Bitcoin.

The German Government just sent 3846.05 BTC ($223.81M) to Flow Traders and 139Po (likely institutional deposit/OTC service).

The German Government has 0 BTC ($0.00M) remaining. pic.twitter.com/R2vfylR1b2

The sell-off, which began on Aug. 23, has been closely watched by the cryptocurrency community, with some speculating that the government is attempting to influence the Bitcoin market.

However, others have pointed out that the government may simply be selling the BTC to cover its expenses or to generate revenue.

Bitcoin price fell sharply last week

The German government's Bitcoin sell-off has been a major factor in the sharp sell-off in the cryptocurrency markets over the past week. Bitcoin (BTC) dropped to a low of $53,900 on Friday, marking its biggest pullback from the March high of $73,700.

The sell-off was also triggered by a lack of demand growth from Bitcoin whales and limited stablecoin liquidity, according to a report by Blockware Solutions. This caused panic selling in the market, leading to the steep price decline.

Some Bitcoin enthusiasts are now suggesting that the massive bullish return for Bitcoin is on the horizon, as the panic selling appears to be over.

“Germany full stack dumping their seized BTC may go down as one of the biggest strategic blunders in history as soon as the next few decades,” wrote one commentator on Twitter.