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German Government Bitcoin Available Now Less Than $1 Billion Left to Sell

German Government Bitcoin Sales Deplete Holdings to Less Than $1 Billion

Key Points:

  • The German government’s ongoing Bitcoin selling has reduced their holdings to less than $1 billion, as recent transfers reached over $520 million.
  • These sales coincide with concerns regarding repayments and transfers from Mt. Gox creditors, contributing to the decline in Bitcoin’s value.

In recent weeks, the German government’s selling of Bitcoin has had a significant impact on the cryptocurrency market.
German Government Bitcoin Sales Impact Market

According to Arkham, the German government’s Bitcoin holdings have been greatly diminished, now standing at less than $1 billion. Researchers have noted substantial movements of funds associated with the government’s wallet, indicating ongoing sales of confiscated Bitcoins.

Arkham reports that 3,000 BTC, valued at $176.26 million, were transferred to Flow Traders, a trading company. In total, 8,853.5 BTC worth $520.17 million were moved in a single day. Currently, the German government holds 15,110 BTC, equivalent to $883.7 million.

The previous day saw several significant transactions executed by the German authorities: 5,000 BTC worth $293.77 million were sent to domestic accounts, and 1,500 BTC ($88.31 million) were moved to an unknown address. These sales began last month, with Bitcoin being sold from a wallet operated by the Bundeskriminalamt (BKA), Germany’s Federal Criminal Police Office.

Analysts Monitor Strategies Amid Market Fluctuations

Many analysts utilize the Arkham platform to track these transactions and speculate that the sales strategy may aim to mitigate confiscations and integrate digital assets into the economy. However, the German government’s Bitcoin sales are not the only factor concerning crypto investors. The market is also under pressure from the payout of billions of dollars’ worth of digital currency from the collapsed Mt. Gox exchange to its creditors.

Last Friday, Nobuaki Kobayashi, the trustee for the Mt. Gox bankruptcy estate, announced the commencement of repayments in Bitcoin and Bitcoin Cash to creditors through various designated crypto exchanges. This, along with transfers related to the U.S. government, has led to fears of imminent large-scale sales affecting over $20 billion worth of cryptocurrency.

As of July 11, 2024, Bitcoin is trading at $57,200, reflecting a decrease of 1.75% in the last 24 hours and a drop of over 15% compared to its value 30 days ago.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.