German Authorities Continue Bitcoin Sell-Off Amid Market Uncertainty
German authorities are in the spotlight again for selling off more Bitcoin, following a significant $170 million worth of Bitcoin sales last week. According to on-chain analysis, Germany’s Federal Criminal Police Office (BKA) transferred 400 BTC (worth about $25 million) to popular cryptocurrency exchanges Coinbase and Kraken on Tuesday. Furthermore, 500 BTC (valued at over $30 million) was moved to an unknown address, as reported by blockchain monitoring service Arkham.
These actions are taking place during a bearish run in the crypto market, with Bitcoin (BTC) currently priced around $61,700. Earlier this week, Bitcoin's value dipped below $60,000 multiple times before rebounding. In earlier months, Bitcoin hit an all-time high of $73,797 in March but fell to $56,527 in May before rallying back above $64,000.
A Series of Significant Transfers
In addition to the recent sales, the German government had previously sent $130 million BTC to exchanges on June 19 and $65 million BTC on June 20. They also received $20.1 million back from Kraken and $5.5 million from wallets linked to Robinhood, Bitstamp, and Coinbase.
Currently, Germany holds 46,359 BTC, which is approximately worth $2.8 billion. This shows a sizeable portion of its seized Bitcoin has been sold off. The seized cryptocurrency was originally confiscated from the movie piracy website Movie2k.to. In January, German police secured 50,000 BTC from the piracy website, marking it as the “most extensive security of Bitcoins” by German law enforcement to date.
Market Impacts and Future Prospects
The significant liquidation of Bitcoin by German authorities, combined with substantial outflows from spot Bitcoin ETFs, has contributed to declining prices in the crypto market. Bitrue’s Chief Strategy Officer, Robert Quartly-Janeiro, suggested last week that German authorities might continue to sell Bitcoin, anticipating a "softening BTC price" trend for some time.
The cryptocurrency market has been highly volatile, recording liquidations exceeding $300 million on Monday alone. Bitcoin accounted for roughly half of these liquidations, around $150 million, while Ethereum (ETH) saw $66 million in liquidations. Predominantly, these market movements have impacted long positions, leading to forced closures and additional price pressure.
The potential for further Bitcoin sales by the German government adds another layer of uncertainty to an already volatile market, increasing the complexity of future predictions for crypto enthusiasts and investors alike.
