The German Government Has Nearly Exhausted Its Bitcoin Treasury, Selling Over 90% of Its BTC Seized in January

After a month-long period of increased selling pressure, the German government has nearly exhausted its Bitcoin treasury, selling over 90% of its BTC seized

The German government has nearly sold out its Bitcoin treasury, having sold over 90% of the BTC it seized in January in the country’s largest Bitcoin seizure, valued at over $2.1 billion.

With less than $300 million worth of BTC remaining, this marks the end of a period of significant sell-offs, which is expected to lead to further price appreciation for the largest cryptocurrency on the market.

9.9% Of Seized BTC Remains

On-chain data from market intelligence firm Arkham shows the German government selling 2,375 BTC ($137.87 million) to exchanges including Kraken, Bitstamp, and Coinbase on Thursday.

Later, an additional 3,250 BTC ($191.02 million) was sent to exchanges for selling purposes and over-the-counter (OTC) deals, according to the data.

Recently, the German government moved 5,000 BTC ($286.44 million) to Flow Traders, Coinbase, Kraken, Bitstamp, 139Po, and bc1qu. They have now moved 10,627 BTC ($615.33 million) to market makers and exchanges on Thursday alone.

According to Arkham data, with only 4,925 BTC left, the German government now holds 9.9% of the original 50,000 BTC seized from Movie2k in January, which is valued at just over $284 million at the current BTC price of $57,000.

The state of Saxony in Germany found Movie2k, a movie streaming website, guilty of money laundering and other illegal activities.

On Wednesday, Dr. Lennart Ante, co-founder of the German-based blockchain research lab, stated that the Saxon government is required to sell the confiscated bitcoin as per standard procedure, despite pleas from lawmakers like Joana Cotar to have the country’s legislative chamber keep the seized BTC.

However, Dr. Ante clarified that the general prosecutor’s office of Saxony is in charge of liquidating the confiscated BTC assets as part of “standard procedure.”

Bitcoin Price Analysis

Currently trading above $57,400, the BTC price has managed to consolidate above this level for the past few days, indicating some stability in the market before another potential bullish move up to tackle key resistance levels.

This contrasts sharply with the price action last week, when Bitcoin experienced drastic price swings in both directions due to selling pressure from the German government and uncertainty surrounding the payments from the defunct exchange Mt. Gox.

In the short term, the Bitcoin price will encounter the $58,200 resistance, which has proven to be difficult to penetrate for the largest cryptocurrency on the market over the past 6 days, failing to cross this level to test the $60,200 obstacle.

Ultimately, it remains to be seen when the German government will finish its Bitcoin sell-off and deplete its entire Bitcoin treasury, and how BTC’s price will react as the daily selling pressure experienced over the past month subsides.

The featured image is from DALL-E, and the chart is from TradingView.com

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