German Government Concludes Bitcoin Sell-Off, Emptying Seized Crypto Reserves
The German government has officially exhausted its Bitcoin holdings, marking the end of a significant sell-off that has captivated the cryptocurrency market for weeks. According to data from blockchain analysis firm Arkham Intelligence, the last transaction occurred on Friday, July 12, 2024, when the government transferred 3,846.05 BTC (valued at approximately $223.81 million) to Flow Traders and 139Po, likely for institutional deposit or over-the-counter (OTC) services.
This final transfer concludes a series of transactions that began in late June, during which the German authorities gradually liquidated their cache of roughly 50,000 Bitcoin, worth over $2 billion when initially seized. The Bitcoin originated from the operators of Movie2k.to, a now-defunct piracy website, and was confiscated by German law enforcement in January 2024.
Throughout the sell-off process, the government utilized various exchanges and market makers, including Coinbase, Kraken, Bitstamp, and Cumberland, to offload their holdings. The staggered nature of these sales was likely an attempt to minimize market impact, although it still contributed to price volatility in recent weeks.
The market’s reaction to this substantial sell-off has been mixed. While there were initial fears that billions of dollars worth of Bitcoin hitting the market would significantly depress prices, the impact appears to have been less severe than anticipated. Bitcoin’s price, which had been trading below $60,000 during much of the sell-off period, showed resilience by climbing to around $58,300 by the end of the week.
Interestingly, the German government’s divestment coincided with increased inflows into U.S. spot Bitcoin ETFs, which absorbed approximately $801 million in BTC over four recent trading sessions. This influx of institutional interest may have helped offset some of the selling pressure from the German authorities.
As the German government concludes its Bitcoin sales, market attention is now shifting to other potential sources of selling pressure, such as the ongoing Mt. Gox reimbursement plan. However, some analysts believe that the impact of these events may already be priced into the market.
