Key Takeaways
- The German government transferred another $75 million in Bitcoin to exchanges.
- Germany has sold over $390 million in Bitcoin within a month.
- Germany still holds around 40,000 Bitcoin after recent sales.
The German government has moved another $75 million in Bitcoin to exchanges, continuing a trend of liquidating seized reserves that now total over $390 million in recent weeks.
Blockchain data revealed that the German Federal Criminal Police Office (BKA) transferred the funds across multiple transactions on July 4. These transactions spread the Bitcoin to exchanges such as Coinbase, Kraken, and Bitstamp.
$315 million sold
This recent transfer adds to the approximately $315 million in Bitcoin the government has offloaded since mid-June, totaling over $390 million in under a month.
The BKA originally seized nearly 50,000 Bitcoin in 2013 from the former operator of the film piracy website Movie2K. At today’s prices, this stash is worth about $2.3 billion.
The consistent transfer of Bitcoin to exchanges suggests that Germany may continue to liquidate portions of its reserves. This move has sparked concerns about potential impacts on Bitcoin’s market price, which recently fell below $58,000.
40,000 BTC remaining
Despite the sales, the transferred amounts represent a small fraction of the BKA’s total Bitcoin holdings. Germany still holds around 40,000 Bitcoin after the latest movements.
Similar actions have been observed in the U.S., where the government has also been transferring Bitcoin seized from criminal cases, raising concerns about market impacts from these liquidations.
The timing of these sales is notable as creditor repayments from Mt. Gox’s 2014 collapse are set to begin in July, potentially adding more selling pressure to the market, according to Bitcoin Magazine.
However, proponents argue that these sales constitute only a tiny fraction of daily Bitcoin trading volumes.
