German Government Liquidates Majority of Bitcoin Holdings
By: Eva Baxter
The German government has nearly exhausted its Bitcoin treasury, liquidating over 90% of its BTC holdings seized during the country's largest cryptocurrency seizure. After a month of aggressive selling, the government retains only around $284 million worth of Bitcoin. Initially, the German authorities confiscated roughly 50,000 BTC, valued at approximately $2.1 billion at the time of seizure, in connection to illegal activities by the Movie2k streaming website.
On-chain data from market intelligence firm Arkham indicates that a substantial portion of the Bitcoin was sold off to various exchanges, including Kraken, Bitstamp, and Coinbase. Specifically, approximately 2,375 BTC ($137.87 million) was initially offloaded, followed by an additional 3,250 BTC ($191.02 million) through exchanges and over-the-counter (OTC) deals. Furthermore, 5,000 BTC ($286.44 million) was transferred to Flow Traders, Coinbase, Kraken, Bitstamp, 139Po, and bc1qu. In total, the government has parted with 10,627 BTC ($615.33 million) in just one day.
Despite calls from lawmakers like Joana Cotar to retain the seized BTC, the Saxon government, following standard legal procedures, continues to liquidate these assets. Dr. Lennart Ante, co-founder of the German-based blockchain research lab, highlighted that the general prosecutor's office of Saxony is responsible for overseeing this liquidation process as per the regulations.
Currently, Bitcoin is trading above $57,400, showing signs of consolidating above this level. The easing selling pressure from the German government and the overall market stability have prompted optimism for potential bullish movements. The market witnessed significant price swings in the past week due to the sell-offs and uncertainties surrounding other factors like the defunct Mt. Gox exchange payments.
The main obstacle in Bitcoin's immediate price trajectory is the $58,200 resistance level, which the cryptocurrency has struggled to surpass. Observers are keenly watching the potential end of the German government's sell-off period and its impact on BTC's price, especially as daily selling pressure subsides.
In an interesting parallel, as Germany continues to offload its Bitcoin, El Salvador is on a path to increasing its BTC holdings. The Central American nation, under President Nayib Bukele, continues to purchase 1 BTC daily. As of now, El Salvador's Bitcoin stash has grown to 5,808 BTC. If the German government’s selling pace persists, El Salvador's holdings could soon surpass those of Germany.
For more information on the key exchanges involved and further details, please visit their official websites.
