The German government transferred another 2,375 bitcoins worth about $138 million to exchanges on Thursday, continuing a months-long liquidation of seized reserves.
Urgent: 🇩🇪 The German government has sent 2,375 more #Bitcoin It is worth $138 million on the stock exchanges.
They now have 13,000 BTC left. Hold on! ✊ pic.twitter.com/80dOE7iWyj
— Bitcoin Magazine (@BitcoinMagazine) July 11, 2024
Germany originally acquired around 50,000 bitcoins in 2013 after the Federal Criminal Police Office (BKA) seized the reserves from the now-defunct pirate site Movie2K. At today’s prices, the stockpile would be worth more than $2 billion.
Since mid-June, the government has been steadily selling off parts of its massive bitcoin stash. The transfers have gone to major exchanges like Coinbase, Kraken, Bitstamp, and over-the-counter trading desks.
Germany sold over 25,000 bitcoins worth nearly $1.5 billion in the past month. According to the data on the chainAfter the recent sales, she now has just 13,100 bitcoins worth $765 million.
The prolonged liquidations have weighed on the price of bitcoin, which fell below $55,000 in July amid intense selling pressure. But with government reserves dwindling, analysts say the end of the selloff could provide some relief.
The remaining $765 million represents a relatively small portion of Germany’s daily bitcoin trading volume and original bitcoin supply. As Germany exhausts its remaining bitcoins, the downward pressure may dissipate, eliminating the ongoing bearish impact.
Some experts estimate that the government could exhaust its entire stockpile of confiscated bitcoin by September if sales continue at the current pace. When sales stop, it could pave the way for a price spike.
The liquidations have drawn criticism from Bitcoin supporters within the German Parliament. Members say the government should hold onto the scarce digital assets rather than sell them for euros.
However, the Bitcoin sales have allowed Germany to withdraw over $1.5 billion so far. The limited supply means that the controversial liquidation wave will soon end, potentially restoring favorable winds to Bitcoin prices.
