The German government’s Bitcoin wallet has dwindled to 9,094 Bitcoin, a mere 18% of its initial holdings, following a series of transactions to various crypto exchanges on July 11.
This wallet, which contains Bitcoin seized during a crackdown on a film piracy website in January, has seen a significant outflow of assets since June 19. These activities have intensified as July progresses.
German Govt. Bitcoin Wallet Down to Last 9K BTC
On July 11, the wallet’s balance temporarily fell below 5,000 BTC after transferring 10,620 BTC—valued at approximately $615 million—to cryptocurrency trading platforms such as Coinbase, Bitstamp, Kraken, Flow Traders, and two unidentified addresses, according to blockchain intelligence firm Arkham.
However, shortly after this substantial transfer, some of the funds were redirected back to the German government’s wallet, restoring its holdings to over 9,000 BTC. Despite the buyback, the current balance represents just 18% of the 49,857 Bitcoin initially confiscated from the film piracy website Movie2k in January.
Institutional Deposits
Arkham’s analysis suggests that the two anonymous addresses, ending in “139Po” and “bc1qu,” are likely associated with institutional deposit or OTC trading service providers. However, this is just speculation and no confirmation has been made.
This mass liquidation has sparked criticism from various quarters. German lawmaker and Bitcoin advocate Joana Cotar expressed her disapproval earlier in July, arguing that Bitcoin could have been utilized as a “strategic reserve currency” to hedge against potential risks in the traditional financial system.
Adding to the chorus of dissent, an Ordinals user inscribed a message translating to “Taxes are robbery,” capturing the frustration of some within the Bitcoin community.
A significant Sell-Off
The sell-off by the German government, combined with concerns that Mt. Gox may begin distributing over $8 billion worth of Bitcoin to its creditors, has contributed to a recent slump in Bitcoin’s price. These bearish events have pushed the Crypto Fear & Greed Index—a measure of market sentiment—into the “Extreme Fear” zone for the first time since January 2023.
As of the time of writing, Bitcoin is trading at $56,870, reflecting a 1.8% decrease over the last 24 hours and a 15.1% decline over the past month. The leading cryptocurrency dropped below its 200-day Moving Average a few days ago and hasn’t been able to reclaim the crucial zone.
CoinMarketCap data confirms that Bitcoin is down 22.79% from its all-time high of $73,000 witnessed in March at $73,000. Notably, the German authorities’ BTC dumping and Mt. Gox’s redistribution of the digital asset have been the major reasons for the BTC price slump.
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