Germany Intensifies Bitcoin Sell-Off, Causing Market Stir

By: Eliza Bennet

The German government is amplifying its efforts to divest Bitcoin seized from a movie piracy website, exerting selling pressure on an already volatile market. Arkham Intelligence data reveals that the government transferred 900 BTC, valued at over $54 million, on June 25. Among these, 200 BTC were sent to the Coinbase exchange, another 200 BTC to the Kraken exchange, and the remaining amount to an unmarked wallet, identified as '139Po'.

These transactions are part of a broader trend of substantial Bitcoin movements by German authorities. Just last week, the government transferred approximately $195 million in Bitcoin to major exchanges including Coinbase, Kraken, and Bitstamp. Despite these extensive transactions, Germany still holds a significant BTC balance. As per Arkham Intelligence, the government possesses 46,359 BTC, estimated to be worth over $2 billion. This substantial holding was acquired earlier this year by seizing nearly 50,000 BTC from the piracy site Movie2k.to.

Germany has become one of the top five countries with a substantial Bitcoin balance, trailing only behind nations like the United States, China, and the United Kingdom according to Bitcoin Treasuries data.

The ongoing liquidation activities by the German government have intensified market volatility, with analysts keeping a close watch on these movements and their potential impact on Bitcoin’s price. During the past day, Bitcoin’s price experienced a dip to $58,500 for the first time since early May. This plunge was exacerbated by the announcement from the bankrupt Mt. Gox exchange, which revealed plans to begin Bitcoin repayments to its creditors.

According to CryptoSlate's data, Bitcoin has slightly recovered to $61,300, marking nearly a 5% rebound from its local bottom. Market experts propose that this downturn was significantly driven by fear. They argue that the announcement about Mt. Gox’s Bitcoin repayments created a panic, leading to substantial selling pressure on trading platforms. Despite this, some Bitcoin bulls, like JAN3 CEO Samson Mow, remain optimistic.

Samson Mow said: “Right now, this Bitcoin dip is purely sentiment and fear driven, not from selling of large holdings. Even when Gox coins come to market, if there are sales, they will likely be via OTC and will have minimal impact on price.”