Key Takeaways:
- The German government sold its remaining Bitcoin holdings
- Final transactions involved transferring 3,846 BTC to Flow Traders and an OTC service
- Sale over the past three weeks has significantly influenced Bitcoin’s market performance.
The German government has sold off the remaining Bitcoin (BTC) in its wallet. This development has implications for both market dynamics and investor sentiment.
The final transaction saw the transfer of 3,846 BTC to addresses associated with Flow Traders and an over-the-counter (OTC) service, according to Arkham Intelligence.
This move could potentially reduce the bearish pressure that has plagued the crypto market for weeks, with some experts suggesting that Bitcoin might regain its upward momentum as a result.
As of recently, the government held just 4,925 BTC, a significant reduction from the 50,000 BTC it possessed as of June 19. These holdings were originally seized from the movie piracy website Movie2k in January.
On Friday, the government received 4,169 BTC from exchanges like Kraken, Coinbase, and Bitstamp, only to send back 2,700 BTC to these platforms by 5:00 am ET. By 10 am, another 2,300 BTC were sent to Kraken, an unidentified address, and an institutional deposit service.
The final 3,846.05 BTC were transferred around 2:35 pm to the institutional trading desk and Flow Traders.
The origins of these Bitcoin holdings trace back to the seizure of assets from Movie2k, an illegal movie streaming site accused of distributing pirated films from 2008 to May 2013. The site’s operators allegedly bought Bitcoin with their illicit earnings, leading to the police seizing 50,000 BTC worth $2.17 billion at the time.
The cryptocurrency community has had mixed reactions to the government’s sell-off. Some members feel a sense of relief, anticipating a potential market rebound, while others believe the government may regret selling its Bitcoin holdings.
The sale of the 50,000 BTC over the past three weeks has been a significant factor in keeping Bitcoin’s price below the $60,000 mark and its 200-day exponential moving average.
The German government’s decision to liquidate its Bitcoin holdings marks the end of a significant chapter in the crypto market. While it has alleviated some bearish sentiment, the long-term effects on Bitcoin’s price and market dynamics remain to be seen.
