German Government Completes Bitcoin Sell-Off, Marking Major Shift in Crypto Market
Cryptoslate’s, Assid Jafri, reported that Germany’s government fully exited its Bitcoin holdings on 12th July, with Arkham’s tracker now displaying a zero balance, indicating a pivotal moment in the cryptocurrency landscape.
According to Arkham Intelligence, the German government completed its Bitcoin liquidation over a 23-day period, wrapping up in late June. The last tranche of 3,846.05 BTC, worth approximately $223.81 million, was transferred to Flow Traders and 139Po, which are likely involved in institutional deposit or over-the-counter (OTC) services.
As of the latest transaction, Bitcoin was trading at $57,656, based on data from CryptoSlate. This divestiture marks the end of Germany’s direct involvement with Bitcoin, originally seized from the operators of the now-defunct piracy site Movie2k.to.
Governments often liquidate seized assets, and the US has conducted similar auctions of crypto acquired from illegal activities. The Bundeskriminalamt (BKA), Germany’s federal criminal police office, began selling the seized Bitcoin in mid-June. These sales increased market supply and led to Bitcoin price fluctuations.
Throughout June, wallets operated by the police transferred funds to various exchanges, OTC desks, and an unidentified address. This period also saw significant inflows into US spot Bitcoin exchange-traded funds (ETFs), with about $801 million in BTC absorbed over four trading sessions.
Additionally, a CryptoQuant report noted that whales have been purchasing Bitcoin at the fastest rate since April 2023, taking advantage of the lower prices due to Germany’s sell-off.
The German government’s exit from its Bitcoin holdings signifies a major shift in the crypto market. Institutional and individual investors are now reacting to the increased Bitcoin availability, with the market impact continuing to unfold.
