The German government has moved another 1000 BTC to three exchanges amid the Bitcoin sell-off chaos.
Since mid-June, the crypto market has witnessed the toughest spell following the German government’s BTC sell-off. Despite the market turbulence, the German government seems not to have abandoned its Bitcoin sell-off strategy.
The blockchain analytics firm Arkham Intelligence confirms that the German government transferred 500 BTC to Coinbase and Bitstamp equivalently. Minutes later, Arkham showed that the government had transferred 500 BTC to an unknown address.
German Government Liquidates Over 10,000 BTC
The German Bitcoin movement was traced by the famous analyst Lookonchain on X. At press time, Lookonchain confirmed that the German BTC holding amounts to 27,461 BTC, valued at $1.55 billion.
The analyst noted that the German government has sold over 24,304 BTC worth over $ 1.44 billion since June 20. In his tweet, the analyst noted that the German government transferred 16,039 BTC worth $915.3 million within 24 hours.
The transfers were made to renowned crypto exchanges, including Kraken, Bitstamp, Coinbase, Cumberland, and FlowTraders. Other exchanges reported to have received BTC from the German government are B2CS Group and unmarked addresses.
The on-chain data shows that the German government received 3673 BTC valued at $206.5M at the current market price. The German government has liquidated over 10,000 BTC from last month’s multiple transfers.
This implies that the German government was more interested in liquidating the seized BTC from the privacy website Movie2k.to rather than selling. The German BTC movement replicated a similar move the US legislators took to sell seized BTC from the Silk Road.
Early this year, the German federal criminal police office (BKA) confiscated 50,000 BTC valued at $2.17 from Movie2k.to. marking the largest Bitcoin seizure in history. The BKA directed the Movie2k.to operators to convert the profits from the now-defunct piracy website.
The team behind Movie2k.to has been accused of violating the German copyright act and engaging in money laundering activities. The piracy company suspended its operation in 2013 due to regulatory pressure.
Crypto Market Reacts to German BTC Sell-Off
Since then, the German authorities have been exploring ways to utilize the seized BTC. On X, the crypto community engages in intense discussion to assess how the government deals with large-scale crypto liquidation.
A tweet from the chief executive of DeFiance Capital, Arthur Cheong, questioned why the government preferred selling the seized BTC over the counter (OTC) to public auctions.
A commenter explained that the government prefers liquidating the seized asset to maximize profits amid volatile crypto assets. The X community noted that the confiscated BTC will be sold at a higher price than the actual cost of the asset during the seizure.
Other X users feared the German selling of the seized BTC would negatively affect the crypto market’s performance.
CoinMarketCap reports that Bitcoin has been stuck in the red zone within the last seven days. At press 09:41 UTC, Bitcoin shed its value by o.03% to trade below the $58 K.
The Bitcoin dip following the German government BTC sale has become the top of discussion for the past few weeks.
Legislators Criticize German BTC Sell-Off
On X Tron founder Justin Sun reacted to the German government’s BTC sell-off strategy. The crypto advisor offered to acquire the seized BTC from the German government to prevent further price tumble.
Sun expressed his willingness to negotiate with the German government on BTC sales. However, the German authority seemed unprepared for any price negotiation and proceeded with the initial BTC sell-off strategy.
The German BTC sale has received tides of criticism from global policymakers. Blockware Intelligence described the German government’s BTC sell-off as foolish amid the heightened geopolitical tension.
The intelligence company noted that the German authority had transferred over $390 worth of Bitcoin to exchanges. The Blockware condemned the German BTC sale of fiat currency, citing the current geopolitical situation in the Eurozone.
The analytical firm stated that Bitcoin has become a valuable asset to acquire compared to other assets. Reflecting on a recent report, Bitcoin mining has become more expensive since it consumes more energy to mine a single BTC.
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