Germany's Bitcoin Trove Down by Over Half as Government Shreds BTC Holdings From 50,000 to Under 23,000 Tokens

Bitcoin’s market price stabilized as Germany’s government shredded its BTC holdings from over 50,000 coins to under 23,000 tokens.

Germany's government continued its BTC liquidation spree on Tuesday, with on-chain data showing that the state authority transferred 6,306.9 Bitcoin (BTC) valued at over $362 million to several entities.

The large crypto holdings were sent to centralized exchange Kraken, market makers B2C2 Group and Cumberland DRW, and an “unlabeled” fourth address on Tuesday morning.

Kraken received 800 BTC (around $45.9 million) in two separate transactions, while B2C2 Group and Cumberland DRW were sent 4,000 BTC ($287.1 million) and 200 BTC ($6.2 million) in two separate transactions, respectively.

The fourth address, which is likely used by an over-the-counter (OTC) desk, received 400 BTC (around $24 million) in a single transaction.

The transfers come as part of Germany's efforts to sell off its BTC holdings, which were seized from the illegal film site Movie2k in January. German authorities have been gradually transferring the BTC to exchanges and trading venues over the past few weeks.

The large-scale selling pressure from Germany has typically caused BTC's market price to dip on the days of the transfers. However, the asset's price remained largely unfazed on Tuesday, despite the fresh selling pressure. BTC was trading at $57,180 at press time.

Following the latest transfer, on-chain data shows that Germany still holds around 22,847 BTC, which is valued at over $1.3 billion at current prices.

While German authorities have been selling off BTC, several crypto exchanges have also returned millions in BTC to state-controlled wallets.

CoinDesk reported on Monday that Bitstamp, Coinbase, and Kraken have returned over $300 million in BTC to Germany's state-controlled wallets. The leading theory behind the return is that the exchanges were unable to sell the crypto within the agreed-upon price ranges.

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