After weeks of systematic selling, the German government is nearing the end of its extensive Bitcoin liquidation process. In early June, Germany held 50,000 BTC, valued at $2.8 billion at current prices, in government wallets. These funds were seized earlier this year from the operators of the film piracy site Movie2k. As of today, the majority of these funds have been moved out of the government’s Bitcoin wallet.
Since June 20, Germany has transferred billions of dollars in Bitcoin to major crypto exchanges including Kraken, Coinbase, and Bitstamp, as well as to wealth management firm Cumberland and other addresses believed to be linked to over-the-counter or institutional trading desks. On-chain data from Arkham Intelligence reveals that only 4,925 BTC, approximately $284 million worth at current prices, remain in the German government’s wallets.
Initially, outflows were moderate but increased significantly earlier this week. On Monday alone, the government transferred $900 million from its wallet. By Wednesday, the German government had reduced its Bitcoin holdings to less than $1 billion. Analysts believe that these coins, directed towards trading platforms, are being sold on the market, contributing to the recent sell pressure affecting Bitcoin’s price.
Despite the substantial sell-off, the government’s net balance is quickly approaching zero, suggesting that its impact on the market may soon decrease. Some bullish Bitcoin investors argue that Germany is missing out on potential future gains by liquidating these assets now.
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