The German government has stepped up its game when it comes to selling off its seized Bitcoin (BTC) stash.
For weeks, our eastern neighbors have been causing a stir in the crypto world by selling their Bitcoins, but this past week this process has gone into a higher gear. More than 43 thousand Bitcoins have already been dumped on the market, which marks more than 87 percent of the initial pile.
German BTC Selling Continues
The idea that the German government would play a major role in the ongoing price correction of Bitcoin would have been believed by few some time ago. But it is the harsh reality.
In February of this year, German authorities seized a total of nearly 50,000 Bitcoins from the operators of the illegal movie streaming website Movie2k. On June 19, the crypto community was shaken for the first time by the first-ever movement of thousands of Bitcoins.
After weeks of selling thousands of Bitcoins for hundreds of millions of dollars, the BTC supply has been shrinking at a record pace over the past week. At the start of the current week, the Bneskriminalarmt (BKA) wallet held around 40,000 Bitcoins, but now it’s down to just 6,394 Bitcoins.
This means that the BTC portfolio has decreased by more than 87 percent in just over three weeks.
Yesterday, the BTC supply even briefly dropped below 5,000 BTC after 10,260 BTC, worth approximately $615 million, was sent to crypto exchanges and anonymous addresses possibly belonging to over-the-counter (OTC) private trading services.
Not long after, some of these funds were transferred back to the German government wallet, bringing the holdings back above 9,000 Bitcoins. These returned Bitcoins were likely the result of a failed sales agreement.
On-chain data shows the selling frenzy continued early this morning, with several thousand Bitcoins entering the market.
Bitcoin dump almost over
With just over 6,000 Bitcoins left to go, it doesn’t seem like it will be long before the German government gets rid of its entire confiscated BTC stash. This would be a huge relief and take some of the fear out of the market.
In this regard, only the repayments from the 2014 collapsed Bitcoin exchange Mt. Gox pose a major risk to the BTC price. With over $7 billion worth of Bitcoins being returned to creditors, this could increase the selling pressure much further.
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Source: https://newsbit.nl/duitse-overheid-heeft-al-meer-dan-43-duizend-bitcoins-gedumpt/
