The German The government on Thursday transferred another 2,375 Bitcoins worth about $138 million to exchanges, continuing a months-long liquidation of seized reserves.
JUST IN: 🇩🇪 The German government has sent another 2,375 #Bitcoin worth $138 million in scholarships.
They now have 13,000 BTC left. HODL! ✊ photo.twitter.com/80dOE7iWyj
— Bitcoin Magazine (@BitcoinMagazine) July 11, 2024
Germany originally obtained nearly 50,000 Bitcoin in 2013 after the Federal Criminal Police Service (BKA) seized reserves from the now-defunct piracy website Movie2K. At current prices, the stash was worth more than $2 billion.
Since mid-June, the government has steadily sold portions of his vast Bitcoin hoard. Transfers have gone to major exchanges such as Coinbase, Kraken, Bitstamp and OTC trading desks.
Germany sold more than 25,000 Bitcoins in the past month, worth about $1.5 billion. According to on-chain dataAfter the latest sales, there are now only 13,100 Bitcoins left in circulation, worth a total of $765 million.
The prolonged liquidation weighed on Bitcoin’s price, which fell below $55,000 in July amid heavy selling pressure. But with government reserves dwindling, analysts say the end of the selling could provide some relief.
The last $765 million represents a relatively small portion of daily Bitcoin trading volumes and Germany’s native Bitcoin supply. As Germany exhausts its remaining coins, the downward pressure could ease, removing any lingering bearish influence.
Some experts estimate that the government could use up its entire stockpile of seized bitcoins as early as September if sales continue at the current pace. If sales stop, that could pave the way for bullish price action.
The liquidations have drawn criticism from Bitcoin advocates within The German parliament. Members believe that the government should hold onto scarce digital assets instead of selling them for euros.
Regardless, the bitcoin sales have allowed Germany to collect more than $1.5 billion so far. The limited supply means the controversial liquidation wave should end soon, potentially providing a tailwind for bitcoin prices.