After a month of heavy selling, the German government has almost completely used up all of its Bitcoin reserves. It sold over 90% of the BTC it seized in January, which was the most significant Bitcoin seizure in the country’s history and was worth over $2.1 billion.
With less than $300 million worth of Bitcoin still in circulation, this marks the end of a major selling period. This means that the price of the world’s most significant cryptocurrency is likely to rise even more.
On-chain data from market intelligence company Arkham shows that the German government sold a lot of bitcoin on Thursday. At first, the German police wallet sold 2,375 BTC, which is worth $137.87 million, to platforms like Coinbase, Kraken, and Bitstamp.
Bitcoin 10,627 BTC Transferred
After that, an extra 3,250 BTC, worth $191.02 million, was sent to exchanges so they could be sold and used for over-the-counter (OTC) trades. Also, the government sent 5,000 BTC to Flow Traders, Coinbase, Kraken, Bitstamp, 139Po, and bc1qu. This amount is equal to $286.44 million. 10 627 BTC, or $615.33 million, were sent to market makers and platforms just on Thursday.
At this point, only 4,925 BTC are left. According to Arkham data, the German government only has 9.9% of the original 50,000 BTC that were seized in the Movie2k case in January. At the present price of $57,000 per BTC, this is worth a little more than $284 million.
The state of Saxony in Germany found the Movie2k streaming website guilty of money theft and other crimes.
As Bitcoinist reported, Dr. Lennart Ante, co-founder of the German blockchain research lab, said that the Saxon government has to sell the seized Bitcoin as is normal practice, even though politicians like Joana Cotar want to keep the seized BTC. Dr. Ante made it clear that these assets will be sold by the general prosecutor’s office of Saxony in line with “standard procedure.”
Bitcoin is trading above $57,400 right now, and it has stayed above this level for several days, which suggests a possible bullish move to key support levels. This is a significant shift from last week, when prices went up and down a lot because the German government was selling and there was doubt about when the payments from the now-defunct Mt. Gox exchange would come through.
Bitcoin will need to get past the $58,200 level of support soon, as it has been a significant barrier for the past six days. If you can get past this level, you might be able to test the $60,200 challenge.
It’s still not clear when the German government will stop selling Bitcoin and how the price of Bitcoin will change when the selling pressure that has been building for a month eases.
