The German government has been making headlines with its ongoing liquidation of seized Bitcoin reserves, with the latest transfer of 2,375 Bitcoin worth $138 million to exchanges. This move is part of a months-long process that has seen Germany sell off a significant portion of its original stash of nearly 50,000 Bitcoin obtained in 2013.
The seized reserves were originally confiscated from the now-defunct piracy website Movie2K by the Federal Criminal Police Office (BKA). At today’s prices, the stash was valued at over $2 billion. However, with the recent sales, Germany now holds just 13,100 Bitcoin worth $765 million.
The continuous liquidation has put pressure on Bitcoin’s price, causing it to drop below $55,000 in July. Analysts believe that as Germany’s reserves dwindle, the selling pressure could ease, potentially leading to a more bullish market.
Experts predict that Germany could deplete its remaining Bitcoin stash by September if sales continue at the current pace. This has sparked criticism from Bitcoin advocates within Germany’s parliament, who argue that the government should hold onto the scarce digital asset rather than selling it for euros.
Despite the controversy, Germany has managed to cash out over $1.5 billion through the liquidation of its seized Bitcoin. As the supply of seized coins nears depletion, the market could see a shift in sentiment, potentially driving prices higher.
Overall, the German government’s decision to sell off its Bitcoin reserves has sparked debate and speculation within the cryptocurrency community. With the end of sales on the horizon, all eyes are on how this move will impact the market in the coming months.
