Germany’s BTC selling nears an end with only 4,925 Bitcoin left to transfer

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As a researcher with a background in cryptocurrencies and blockchain technology, I find the ongoing Bitcoin sell-off by various entities to be a concerning development for the market. The recent announcement that German authorities sold a significant amount of Bitcoin, worth over $600 million, has significantly contributed to an 18% drop in Bitcoin’s price over the past month. This sell-off, coupled with other sellers like Mt. Gox and Genesis Trading, has led to increased downward pressure on prices and caused widespread fear among investors.

As a crypto investor, I’ve noticed that German authorities selling off a substantial amount of Bitcoin, to the tune of 10,567 coins worth approximately $600 million, has had a significant impact on the market. This sell-off, combined with other large transactions from entities like Mt. Gox and Genesis Trading, has contributed to a sizable 18% decrease in Bitcoin’s price over the past month.

At 1:00 p.m. EST on Thursday, July 11, I’ve found that German authorities still control approximately 4,925 Bitcoins in their linked wallets. This translates to a value of around $285 million based on current market prices. Compared to the initial holding of about 50,000 Bitcoins worth nearly $3 billion when they initiated the sale of these assets three weeks ago, this represents an over 90% decrease in their Bitcoin holdings. It’s also important to note that since the start of Germany’s Bitcoin liquidation, the price of Bitcoin has corrected by approximately 18%.

According to data from Arkham Intelligence’s blockchain analysis, German authorities transferred approximately 10,567 Bitcoin, equivalent to over $600 million, to various exchanges and service providers today. Exchanges such as Bitstamp, Coinbase, and Kraken received a portion of these funds, along with other unspecified service providers.

New Development: The Bitcoin hoard of Saxony, Germany, is rapidly disappearing! They recently transferred an additional 2,000 Bitcoins to various exchanges such as Coinbase, Bitstamp, Kraken, and Flowtraders. With merely 4,925 Bitcoins remaining in the wallet, this selling frenzy may:

— Stefan Luebeck (@CryptoEva) July 11, 2024

Back in June, crypto.news revealed that the German Federal Criminal Police Office (BKA) had confiscated around 50,000 Bitcoins from the administrators of the piracy site Movie2k.to as early as 2013. The BKA later acquired these Bitcoins in mid-January through a “freely given transfer” from the suspects.

Tron founder Justin Sun recently proposed to buy the country’s Bitcoin to minimize market damage.

Sell-off fears

Despite Germany seemingly approaching the final stages of disposing of its Bitcoins, other parties remain obligated to offload theirs.

Mt. Gox, once a leading Bitcoin exchange that failed in 2014, has initiated the process of compensating its creditors after more than a decade. The reimbursement includes around 140,000 Bitcoins, 143,000 Bitcoin Cash, and roughly 69 billion Japanese yen, which sums up to approximately $9 billion in total value.

As a researcher studying the Bitcoin market, I’ve noticed some uneasiness among analysts regarding the sudden surge in BTC supply. They express concern that this unexpected development could potentially result in a significant price drop. The rationale behind their apprehension is that many creditors might choose to sell off their holdings to secure profits before potential losses.

Over the past month, Genesis Trading has been actively unloading Bitcoin from its holdings, adding to the existing market sell-off. The company’s asset liquidation has intensified the downward trend in Bitcoin prices.

I find it hard to accept that Genesis is reportedly selling Bitcoins worth $2 billion now. We still have the ongoing issue with Germany to deal with.

— gumshoe (@0xGumshoe) July 11, 2024

The concurrent actions of Mt. Gox and Genesis Trading, along with significant selling from the German market, have intensified the recent downturn in Bitcoin’s price, resulting in a decrease of approximately 18% over the past month.

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2024-07-11 22:54