📉🔍 Key Highlights on Bitcoin's Recent Decline and German Government's Sell-Off 🇩🇪💸

Since June, Bitcoin (BTC) has been on a decline, largely due to the German government's sell-off and concerns about potential sales from Mt. Gox distributions. This activity has sparked numerous questions. Below are some key highlights:

🪙 Key BTC Movements by the German Government:

Seized Assets:

The German government held approximately $2 billion in Bitcoin, seized from Movie2k.to operators, a movie piracy site active in 2013.

Sales Timeline: They began selling these assets on June 18, 2024, with the most recent action occurring just a few hours ago.

Transactions:

Deposited: 9,983 BTC (~$591 million) directly to a centralized exchange (CEX).

Moved: 19,521.7 BTC (~$1.14 billion) to wallets likely belonging to B2C2, Flow Traders, and Cumberland, possibly for an over-the-counter (OTC) transaction.

Received: 7,106 BTC (~$412 million) back, mostly from CEX at a lower price.

Current Holdings: 27,461 BTC (~$1.55 billion).

🤔 Questions Raised by These On-Chain Activities:

Why Move Directly to CEX and Sell on the Spot Market Instead of OTC?

Organizations typically sell via OTC to avoid causing panic and market volatility. The German government's direct move to CEX caused market panic and significant volatility.

Why Withdraw BTC After Moving to CEX?

They withdrew BTC from CEX after causing market turbulence, often following a price drop. This might indicate a realization that spot selling was not a good idea, prompting a shift to OTC sales. This seems plausible given the transfer of funds to Flow Traders and Cumberland, which usually handle OTC deals.

The continued movement of funds to and from CEX suggests either an intent to create market panic or internal operational disorganization within the German government's departments handling the sell-off.