The German government has transferred almost all the bitcoins seized in January 2023 to exchange platforms, indicating that it has probably finished selling them. According to blockchain data, the addresses labeled as belonging to the German authorities now have just 9,000 bitcoins, down from almost 50,000 BTC when the sale process began in June.
This massive movement of Bitcoins to exchanges has put downward pressure on the cryptocurrency’s price in recent weeks. Bitcoin has lost almost 20% of its value since the German government began making transfers.
Bitcoin transfers by the German government
The German government began transferring bitcoins seized from movie piracy site Movie2k in January 2023 to exchange platforms such as Coinbase, Bitstamp and Kraken from June onwards. In total, he sent the equivalent of $269 million worth of BTC to these exchanges, as well as a further $350 million to an unidentified address.
However, the government also appears to have withdrawn at least $86 million in bitcoins from known exchanges during this period. In the end, he would have only 9,000 bitcoins left, a drop of over 80% on his initial portfolio.
The impact on the Bitcoin price
Massive Bitcoin transfers by the German government have helped to drive down the cryptocurrency’s price in recent weeks. Bitcoin has lost almost 20% of its value since sales began, falling from around $60,000 to $48,000 currently.
Some analysts believe that selling pressure could continue until the government has finished selling off its reserves. However, the announced end of the selling process should provide some relief for the futures market. Bitcoin could then resume its upward momentum.
