German authorities have been making headlines with their massive Bitcoin sell-off, contributing to the recent drop in Bitcoin’s price. Today, they sold 10,567 BTC worth $600 million, bringing their total remaining holdings down to 4,925 BTC, valued at $285 million. This marks a significant decrease from the 50,000 BTC worth nearly $3 billion that they initially held.
The sell-off by German authorities began three weeks ago, and since then, Bitcoin has corrected by approximately 18%. The wallets linked to the German authorities transferred the BTC to various exchanges like Bitstamp, Coinbase, and Kraken, as well as other service providers, according to blockchain data from Arkham Intelligence.
In June, it was reported that the German Federal Criminal Police Office (BKA) seized about 50,000 BTC from individuals associated with the piracy movie website Movie2k.to back in 2013. The Bitcoin was transferred to the BKA in mid-January after a voluntary transfer from the suspects.
While Germany seems to be nearing the end of its sell-off, other entities are still looking to offload their BTC. Mt. Gox, once a major Bitcoin exchange, is in the process of repaying its creditors with over 140,000 BTC, 143,000 Bitcoin Cash, and 69 billion Japanese yen, totaling around $9 billion. Analysts are worried that this influx of supply into the market could further drive down Bitcoin’s price as creditors may choose to sell off their holdings.
Genesis Trading has also been actively selling BTC over the past month, adding to the selling pressure in the market. The combination of sell-offs from Mt. Gox, Genesis Trading, and German authorities has intensified the recent price decline of Bitcoin, which has already seen an 18% drop over the past month.
Given the significant amount of Bitcoin being sold off by various entities, many are closely watching the market to see how this increased supply will impact prices in the near future. Investors are advised to stay informed and monitor the situation closely to make informed decisions regarding their Bitcoin holdings.
