After weeks of selling, the German government is approaching the conclusion of its extensive Bitcoin liquidation process.
After weeks of selling, the German government is approaching the conclusion of its extensive Bitcoin liquidation process. Germany held 50,000 BTC, valued at $2.8 billion at today's prices, in government wallets earlier in June. These funds were seized from the operators of the film piracy site Movie2k earlier this year. As of today, most 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 such as Kraken, Coinbase, and Bitstamp, as well as to wealth management firm Cumberland and other addresses believed to belong to over-the-counter or institutional trading desks. On-chain data from Arkham Intelligence indicates that only 4,925 BTC, approximately $284 million worth at current prices, remain in the German government’s wallets.
Outflows began at a relatively moderate pace but ramped up significantly earlier this week, with the government sending out $900 million from its wallet on Monday alone. The German government has reduced its Bitcoin holdings to less than $1 billion as of Wednesday. Given that these coins have been directed towards trading platforms, most analysts assume they are being sold on the market, contributing to the sell pressure that has impacted Bitcoin's price in recent weeks
Nevertheless, the state’s net balance is rapidly approaching zero, suggesting that the government's market impact may soon diminish. Some bullish Bitcoin investors believe Germany is missing out on significant future gains by liquidating these assets now.
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