Germany Increases Bitcoin Sell-Off Before Market Rally Sees 5% Rebound
The German government is escalating its sale of Bitcoin confiscated from a movie piracy website, adding selling pressure to an already volatile market.
Arkham Intelligence data reveals that on June 25, the government moved 900 BTC, valued at over $54 million, in three transactions. Of these, 200 BTC were sent to Coinbase, another 200 BTC to Kraken, and the rest to an unmarked wallet, “139Po.”
This move follows a recent trend of large-scale Bitcoin transactions by German authorities. Just last week, around $195 million in Bitcoin was transferred to major exchanges like Coinbase, Kraken, and Bitstamp.
Despite these transactions, the German government still holds 46,359 BTC, estimated to be worth over $2 billion, as per Arkham Intelligence. This significant BTC stash was obtained by seizing nearly 50,000 BTC from the piracy site Movie2k.to earlier this year.
According to Bitcoin Treasuries data, Germany ranks among the top five countries with a substantial Bitcoin balance, trailing behind the United States, China, and the United Kingdom.
The ongoing liquidation by the German government is contributing to the volatility in the crypto market. Analysts are closely monitoring these movements and their potential impact on Bitcoin’s price.
BTC’s price dropped to $58,500 for the first time since early May after bankrupt Mt. Gox announced it would commence Bitcoin repayments to creditors. However, the digital asset has since slightly recovered to $61,300, up nearly 5% from the recent low.
Some market experts believe that the current dip in Bitcoin’s price is driven by sentiment and fear, rather than large holders selling off. They anticipate that any Gox coins entering the market will likely be sold over-the-counter with minimal impact on price.
The German government’s actions are closely watched as they navigate the sale of seized Bitcoin and its potential repercussions on the broader crypto market. The evolving situation underscores the impact of governmental actions on the crypto space and highlights the market’s sensitivity to such developments.
