The German government continued to transfer parts of its massive bitcoin hoard to exchanges on Monday, transferring more than $56 million in multiple transactions.
According blockchain dataAddresses linked to the German government moved a total of 500 btc to Bitstamp and Coinbase (250 btc each), worth approximately $27.9 million, as of 14:48 UTC+8 today, and transferred 500 btc to an unflagged address.
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BREAKING NEWS: German government sends another 1,000 twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin worth $56 million for exchanges photo.twitter.com/zsxg3q2tkV
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1810261185578541226?ref_src=twsrc%5Etfw”>July 8, 2024
In 2013, Germany seized nearly 50,000 bitcoins from the operators of the now-defunct piracy website Movie2K. The stash is estimated to be worth around $2.3 billion at current prices.
This comes after the government transferred around $390 million worth of bitcoin to various platforms since mid-June.
The steady flow of transfers to stock exchanges indicates Germany's possible intentions to liquidate part of its reserves. While the motives remain unclear, the sales have fueled volatility in the price of bitcoin, which fell below $55,000 last week.
However, the amounts transferred so far represent a relatively small part of Germany's huge holdings. After the latest transactions, the government still holds around 40,000 bitcoins worth almost $2.2 billion.
However, the remaining reserves represent a significant portion of bitcoin's daily trading volume, so experts warn that the threat of further turmoil remains as long as Germany remains active in reducing exposure.
The liquidations come just as long-awaited payments to creditors following the 2014 collapse of Mt. Gox appear set to begin. This timing could increase selling pressure on bitcoin amid an already bearish macroeconomic environment.
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