Key Takeaways
- Germany continues its months-long Bitcoin liquidation.
- The government has sold over 25,000 Bitcoin worth $1.5 billion.
- Germany’s remaining Bitcoin reserves are valued at $765 million.
The German government transferred another 2,375 Bitcoin worth approximately $138 million to exchanges, nearing the end of its liquidation of seized reserves.
Germany originally obtained nearly 50,000 Bitcoin in 2013 after the Federal Criminal Police Office (BKA) confiscated the reserves from the now-defunct piracy website Movie2K. At today’s prices, the stash was worth over $2 billion.
Since mid-June, the government has steadily sold portions of its massive Bitcoin trove. Transfers have gone to major exchanges like Coinbase, Kraken, Bitstamp, and OTC trading desks. Germany has offloaded over 25,000 Bitcoin worth approximately $1.5 billion over the past month. Following the latest sales, it now holds just 13,100 Bitcoin valued at $765 million.
The prolonged liquidation has affected Bitcoin’s price, which sank below $55,000 in July amid heavy selling pressure. Analysts believe that as the government’s reserves dwindle, the end of sales could provide relief to the market.
Some experts estimate the government could deplete its entire stash of seized Bitcoin as soon as September if sales continue at the current pace. The final $765 million represents a relatively small portion of daily Bitcoin trading volumes and Germany’s original Bitcoin stash. As Germany exhausts its remaining coins, downward pressure could dissipate, potentially boosting Bitcoin prices.
Bitcoin advocates within Germany’s parliament have criticized the liquidations. Members argue the government should keep the scarce digital asset rather than selling it for euros. Regardless, Bitcoin sales have allowed Germany to cash out over $1.5 billion so far.
