The German government is escalating its divestment of Bitcoin, confiscated from a movie piracy website, causing additional selling pressure in an already tense market
According to Arkham Intelligence data, the government transmitted 900 BTC, valued at over $54 million, in three transactions on June 25. The Coinbase exchange received 200 BTC, the Kraken exchange received another 200 BTC, and the remaining quantity was transferred to an unmarked wallet named “139Po.”
This significant action is a component of German authorities’ recent trend of large-scale Bitcoin transactions. Last week, approximately $195 million in Bitcoin was transferred to prominent exchanges, such as Kraken, Bitstamp, and Coinbase.
According to Arkham Intelligence, despite these transactions, the German government continues to possess 46,359 BTC, estimated to be worth over $2 billion. Earlier this year, the substantial BTC stash was obtained by confiscating nearly 50,000 BTC from the piracy site Movie2k.to
According to data from the Bitcoin Treasuries, Germany is one of the top five countries with a considerable Bitcoin balance, followed by the United States, China, and the United Kingdom.
The value of Bitcoin is suffering
Analysts are closely monitoring these movements and their potential impact on Bitcoin’s price, as the ongoing liquidation by the German government adds further volatility to the crypto market.
BTC’s price plummeted to $58,500 for the first time since early May over the previous day, following the announcement by insolvent Mt. Gox that it would commence Bitcoin repayments to its creditors. According to press time, the top digital asset has marginally recovered to $61,300, according to CryptoSlate, representing a nearly 5% increase from its local low.
According to certain market experts, the market was reportedly rattled by this announcement, which resulted in significant selling pressure on crypto trading platforms. Some argue that the current decline was precipitated by dread.
Samson Mow, the CEO of JAN3 and a Bitcoin enthusiast, stated:
“Right now, this Bitcoin dip is purely sentiment and fear driven, not from selling of large holdings. Even when Gox coins come to market, if there are sales, they will likely be via OTC and will have minimal impact on price.”