YEREVAN (CoinChapter.com) — The German government’s Bitcoin wallet now holds just 9,094 Bitcoin, only 18% of its initial holdings. Authorities originally seized these Bitcoin from the film piracy website Movie2k during a January crackdown. Since June 19, the government has actively transferred funds to various crypto exchanges. On July 11, a large transfer briefly reduced the wallet’s holdings to under 5,000 BTC. Shortly after, they moved some funds back.
Germany Moves 10,620 BTC to Exchanges, Partially Reverses Transfers
Yesterday, Germany’s Bitcoin wallet sent 10,620 BTC, valued at $615 million, to several cryptocurrency trading platforms. These platforms included Coinbase, Bitstamp, Kraken, Flow Traders, and two anonymous addresses. Blockchain intelligence firm Arkham noted these anonymous addresses likely belong to institutional deposit or over-the-counter trading service providers, although they have not confirmed this.
Shortly after these large transactions, some Bitcoin was transferred back to the government wallet, increasing the holdings back above 9,000 BTC.
Germany’s Bitcoin Sell-Off and Mt. Gox Concerns Drive Market Slump
Germany’s mass sell-off has significantly impacted the Bitcoin market. This action, along with concerns over the distribution of more than $8 billion worth of Bitcoin from the Mt. Gox bankruptcy, has contributed to a recent slump in Bitcoin prices.
On July 11, Bitcoin was trading at $56,870, down 1.8% over the previous 24 hours and 15.1% over the last month. The Crypto Fear & Greed Index, which tracks market sentiment, has fallen into the “Extreme Fear” zone for the first time since January 2023.
Lawmaker Joana Cotar Criticizes Germany’s Bitcoin Sell-Off Strategy
German lawmaker and Bitcoin activist Joana Cotar has criticized the government’s decision to sell off its Bitcoin holdings. Cotar argues that Bitcoin could have been adopted as a “strategic reserve currency” to protect against risks in the traditional financial system. Her concerns echo those of many in the cryptocurrency community who see Bitcoin as a hedge against economic instability.
Mixed Public Reactions to Germany’s Active Bitcoin Sell-Off
The public reaction to Germany’s Bitcoin sell-off has been mixed. One user on the Ordinals platform expressed frustration by inscribing a message that translates to “Taxes are robbery.” This sentiment reflects a broader debate about the role of cryptocurrencies in modern economies and how governments should manage these assets. Despite the controversy, the German government continues to manage its Bitcoin holdings actively.
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