Key Points:
Germany started selling Bitcoin seized from Movie2k.to operators, recovering 7,106 BTC over the past 20 days.
The decision to sell on centralized exchanges caused market fluctuations and panic, prompting a shift to over-the-counter sales.
Spot On Chain predicts Bitcoin will reach $100,000 by year-end, viewing the sell-off as a one-time event.
On June 18, 2024, the German government BTC stepped up its efforts by selling $2 billion worth of Bitcoin confiscated from operator movie2k.to pirates in 2013.
Within the past 20 days, 7,106 Bitcoins—over $412 million equivalent—have already been regained. Most of the selling was done through CEX at lower prices and departed from almost the usual use of the over-the-counter market by institutions to sell to avoid panic within the markets and avoid no good market impressions.
Read more: German Government’s Bitcoin Still Has More Than $40K Unsold
German Government BTC Sell-Off Causes Market Panic
The German government BTC's direct transfer of Bitcoin to CEX was followed by huge market panic and large fluctuations. This was followed by the subsequent withdrawal of BTC from the exchange, insinuating a realization that spot sales were far from perfect. Instead, it has started transferring Bitcoin to Flow Traders and Cumberland, which handles Over-The-Counter transactions. Indeed, this strategic shift implies movement toward the least disturbance in the market and sustaining stability.
Despite these efforts, the continued flow of funds in and out of CEX suggests either the intentional creation of market panic or stressful times within the German government BTC department in charge of the sell-off. Placing things into perspective, the daily trading volume of Bitcoin often reaches $36 billion, so the German government sell-off was relatively small. The sharp price drop was likely due to the psychological impact of on-chain fluctuations on traders and not because of the actual quantity of Bitcoin sold.
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