According to TechFlow, the German state of Saxony began selling nearly 50,000 bitcoins seized from the operator of the movie piracy website Movie2k.to on June 19. As of July 12, its bitcoin holdings had fallen to 6,894. The price of bitcoin has fallen by about 11% since the outflow of funds.
Analysis shows that the price drop is not directly caused by Germany. Although the drop occurred during European trading hours, it was more pronounced during US and Asian trading hours. German government officials may not sell Bitcoin overnight.
Wallet flow data suggests that German authorities were active on the exchange, placing limit sell orders during the day and withdrawing outstanding limit orders and transferring Bitcoin back to their wallets at night.
The direct impact of Bitcoin sales by German authorities is relatively small relative to the overall market. Bitcoinâs recent decline is more likely due to negative narratives such as the German sell-off and the Mt. Gox payout news.
The latest data shows that the German state of Saxony has sold all 50,000 bitcoins.
