The German government transferred another 2,375 Bitcoin worth around $138 million to exchanges on Thursday, continuing its months-long liquidation of seized reserves.
JUST IN:
— Bitcoin Magazine (@BitcoinMagazine) July 11, 2024German Government sent 2,375 more #Bitcoin worth $138 million to exchanges.
They are now left with 13,000 BTC. HODL!pic.twitter.com/80dOE7iWyj
Germany originally obtained nearly 50,000 Bitcoin in 2013 after the Federal Criminal Police Office (BKA) confiscated 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. According to on-chain data, after the latest sales, it now holds just 13,100 Bitcoin valued at $765 million.
The prolonged liquidation weighed Bitcoin's price, which sank below $55,000 in July amid heavy selling pressure. But with the government's reserves dwindling, analysts say the end of sales could provide relief.
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, removing a persistent bearish influence.
Some experts estimate the government could deplete its entire stash of seized bitcoin as soon as September if sales continue at the current pace. When sales stop, it may clear the way for bullish price action.
The liquidations have drawn criticism from Bitcoin advocates within Germany's parliament. Members argue the government should keep the scarce digital asset rather than selling for euros.
Regardless, bitcoin sales have allowed Germany to cash out over $1.5 billion so far. The finite supply means the controversial liquidation spree will have to wrap up soon, perhaps restoring a tailwind for Bitcoin prices.
Source: Bitcoin Magazine - Bitcoin News, Articles and Expert Insights
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