The German government on Thursday transferred another 2,375 bitcoin worth about $138 million to exchanges, continuing its months-long liquidation of seized stocks.
<blockquote class="twitter-tweet”>
BREAKING NEWS: The German government sent 2,375 more twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin worth $138 million in stocks.
Now they have 13,000 btc left. HODL! image.twitter.com/80dOE7iWyj
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1811355571309715679?ref_src=twsrc%5Etfw”>July 11, 2024
Germany originally obtained nearly 50,000 bitcoins in 2013 after the Federal Criminal Police Office (BKA) seized the stash from the now-defunct piracy website Movie2K. At current prices, the stash was worth more than $2 billion.
Since mid-June, the government has steadily sold off portions of its massive bitcoin hoard. Transfers have been directed to major exchanges such as Coinbase, Kraken, Bitstamp and OTC trading desks.
Germany has dumped more than 25,000 bitcoin worth around $1.5 billion over the past month. According to on-chain dataAfter the latest sales, he now has just 13,100 bitcoin valued at $765 million.
The prolonged sell-off weighed on the price of bitcoin, which fell below $55,000 in July amid strong selling pressure. But with government reserves dwindling, analysts say an end to the selling could provide relief.
The final $765 million represents a relatively small portion of Germany’s daily bitcoin transaction volumes and original bitcoin reserves. As Germany exhausts its remaining coins, the downward pressure could dissipate, removing a lingering bearish influence.
Some experts estimate that the government could exhaust its entire reserve of confiscated bitcoins as early as September if sales continue at the current pace. When sales stop, the path could be cleared for bullish price action.
The liquidations have drawn criticism from bitcoin advocates within x.com/BitcoinMagazine/status/1809179428489961970″>The German Parliament. Members argue that the government should hold onto the scarce digital asset rather than sell it for euros.
Still, bitcoin sales have allowed Germany to withdraw more than $1.5 billion so far. Limited supply means the controversial sell-off will have to end soon, perhaps restoring some momentum to bitcoin prices.
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