Germany Increases Bitcoin Sales Following $170 Million Sell-Off: Arkham
German authorities have been observed selling more Bitcoin, as per on-chain analysis, following a recent dump of around $170 million worth of the cryptocurrency. The Federal Criminal Police Office (BKA) of Germany transferred 400 BTC, valued at approximately $25 million, to cryptocurrency exchanges Coinbase and Kraken on Tuesday. Additionally, another 500 BTC, worth over $30 million, was moved to an undisclosed address, according to blockchain monitoring service Arkham.
These transactions occurred amidst a bearish trend in the crypto market, with Bitcoin trading at about $61,700. The digital currency experienced a decline below the $60,000 mark multiple times before showing signs of recovery. In March, Bitcoin reached an all-time high of $73,797 before retreating. Subsequently, it dropped to $56,527 in May before rebounding above $64,000.
The German government recently sold a significant portion of its seized Bitcoin, totaling approximately $170 million. Arkham reported that the German Government currently holds 46,359 BTC, valued at $2.8 billion at current prices. The sold Bitcoin originated from assets confiscated from the movie piracy website Movie2k.to. German authorities seized 50,000 BTC from the piracy website in January, marking it as the most extensive Bitcoin seizure by law enforcement in the country to date.
The large-scale liquidation by the German authorities, coupled with substantial outflows from spot Bitcoin ETFs, has contributed to the ongoing price declines in the crypto market. Bitrue’s Chief Strategy Officer, Robert Quartly-Janeiro, suggested that the German government might continue to sell Bitcoin as they anticipate a softening in the BTC price.
The cryptocurrency market has witnessed increased volatility, with liquidations exceeding $300 million on Monday. Bitcoin accounted for approximately $150 million of these liquidations, while Ethereum saw $66 million in liquidations. The market movements primarily impacted long positions, resulting in forced closures and additional price pressure. The potential for further Bitcoin sales by the German government adds another layer of uncertainty to the market.
Edited by Andrew Hayward.
