Coinjie.com reported:
On Monday, the German government began preparations for its largest Bitcoin selloff to date, sending $900 million worth of digital currency to trading venues.
On July 8th, according to on-chain data from Arkham Intelligence, over 16,000 BTC left exchange wallets, leaving a remaining 23,787.7 BTC ($1.35 billion) in its treasury.
Germany’s Largest Bitcoin Sale
At 8:32 am Eastern Time on Monday, Arkham first observed signs of a continuous selloff.
The statement said that the government sent 2,738.7 BTC ($155.3 million) to “potential exchanges and market makers,” including Kraken by Cumberland, an unconfirmed address, and an address possibly related to institutional or over-the-counter trading services. Cumberland and the unconfirmed address were the first to receive government coins.
Less than two hours later, Arkham stated that Germany also sent 8,100 BTC ($463.2 million) to exchanges such as Kraken, Coinbase, and Bitstamp, including $200 million sent to Flow Traders, a proprietary trading firm and market maker.
Following that tweet, the government immediately sent an additional 5,200 BTC ($297.3 million) to Coinbase, Bitstamp, and OTC addresses.
Arkham wrote, “This makes it their most significant day to date – over 16,000 BTC in total.” “The BTC initially seized from Movie2k is still less than half of that.”
Movie2k was a pirated movie website, and in January of this year, the German police successfully confiscated 50,000 BTC from the website. Unlike their American counterparts, who seized more Bitcoin related to criminal organizations, Germany is converting its coins into fiat currency at a faster pace, much to the frustration of those expecting a cryptocurrency bull market in 2024.
The Terrifying Bitcoin Selloff
Last week, Tron founder and cryptocurrency billionaire Justin Sun proposed buying the remaining portion of German Bitcoin to alleviate the selling pressure in the market. A German lawmaker also criticized the government’s actions, suggesting that they should keep their coins as part of a diversified fiscal strategy instead of selling them all.
Concerns over the German government’s rapid selloff, along with worries about the redistribution of Mt. Gox Bitcoin, have led to a market correction this month, pushing Bitcoin prices to their lowest level since February.
Although the asset has since recovered to above $56,000, digital asset trading firm QCP Capital predicts that BTC will face “poor performance” as the deadline for bankruptcy repayment approaches.