The German Government Sells Over 90% of Seized Bitcoins
After a month-long period of increased selling pressure, the German government has nearly exhausted its Bitcoin treasury, selling over 90% of its BTC seized in January in the country’s largest Bitcoin seizure, worth over $2.1 billion. With less than $300 million worth of BTC remaining, this signals the end of a significant sell-off period, with expectations of further price appreciation for the largest cryptocurrency on the market.
9.9% Of Seized BTC Remains
- On-chain data from market intelligence firm Arkham reveals the German government’s selling activity on Thursday.
- The German police wallet initially sold 2,375 BTC ($137.87 million) to exchanges including Kraken, Bitstamp, and Coinbase.
- An additional 3,250 BTC ($191.02 million) was sent to exchanges for selling purposes and over-the-counter (OTC) deals.
- The German government transferred 5,000 BTC ($286.44 million) to Flow Traders, Coinbase, Kraken, Bitstamp, 139Po, and bc1qu. They have now transferred 10,627 BTC ($615.33 million) to market makers and exchanges on Thursday alone.
- With only 4,925 BTC remaining, Arkham data shows that the German government currently holds 9.9% of the original 50,000 BTC seized from Movie2k in January.
Background on Movie2k
- Movie2k, a movie streaming website, was found guilty of money laundering and other illegal activities by the state of Saxony in Germany.
- Dr. Lennart Ante, co-founder of the German-based blockchain research lab, stated that the Saxon government is obligated to sell the confiscated bitcoin as per standard procedure.
- Lawmakers such as Joana Cotar have urged the country’s legislative chamber to keep the seized BTC.
Bitcoin Price Analysis
Currently trading above $57,400, the BTC price has consolidated above this level for the past few days, signaling stability in the market. Last week, Bitcoin saw violent price swings amid selling pressure from the German government and uncertainty surrounding Mt. Gox payments.
- The Bitcoin price faces the $58,200 resistance level, proving difficult to surpass for the past 6 days.
- The $60,200 obstacle remains untested as Bitcoin struggles to break through the resistance.
It is uncertain when the German government will end its Bitcoin sell-off and deplete its entire Bitcoin treasury. How BTC’s price will react as daily selling pressure subsides remains to be seen.
Hot Take: Concluding Thoughts
The German government’s significant Bitcoin sell-off, with over 90% of seized BTC already sold, has impacted the market. As the remaining BTC dwindles, the potential for further price appreciation becomes a looming possibility. The current stability in Bitcoin’s price above $57,400 amidst resistance levels indicates a cautious yet hopeful sentiment in the market. As the German government nears the end of its sell-off, the crypto community eagerly anticipates how BTC’s price will respond once the selling pressure subsides completely.
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