Original title: German gov’t $354M BTC sell-off: Yet more volatility incoming?
Original article by JOSH O'SULLIVAN
Original source: Cointelegraph
Compiled by: Mars Finance, MK
The German government plans to sell $342 million worth of Bitcoin: Will the market face new volatility? The German government is currently accelerating the sale of Bitcoin and plans to sell $342 million worth of BTC. According to data from Arkham Intelligence, 6,000 Bitcoins worth $354 million have been reserved in the wallets belonging to the German government (BKA) in preparation for the next round of BTC sales.
So far, 5,853,409 bitcoins have been transferred to accounts associated with exchanges such as Coinbase, Kraken, Flow Traders, and some unspecified addresses. The next round of sales is about to start, with a value of about $342 million.
Data from Arkham Intelligence confirms that the 6,000 bitcoins (BTC) have been transferred to a wallet identified as the German government (BKA), and the outflow of funds has also been verified. Data source: Arkham Intelligence
Ongoing BTC sell-off
Prior to the ongoing distribution of these 6,000 BTC, 3,100 BTC was outflowed on July 9, worth $178 million (at the time).
Incidentally, the address also withdrew 1,700 BTC worth $91.78 million from Bitstamp, showing that it was impossible to sell these BTC on the exchange.
On July 9, the address held approximately 26,000 BTC, worth approximately $1.5 billion, and was used to sell funds holding 4,800 BTC.
As of July 10, the wallet’s current holdings stand at just 18,110 BTC, now worth $1.06 billion — a drop of more than $400 million since July 9.
Saxony seizes funds
Investigators in Saxony seized the BTC funds, Dr. Lennart Ante, CEO of Blockchain Research Lab, explained in an interview with Cointelegraph.
Ante explained that the funds “allegedly originated from the illegal streaming portal” Movie2k, and that one of the defendants “allegedly facilitated the voluntary transfer of funds.”
“The Attorney General’s Office has sole authority over the confiscated Bitcoin. The BKA (German State Police) only provides the wallets used to process the transactions.” Ante detailed the proceeds of the funds, stating:
"They go into the state budget of the Free State of Saxony. However, the victims of the Movie2k portal, the filmmakers, may claim part of it. This will be decided by the courts."
Selling Methods, Losing BTC Billionaire Status
Despite the ongoing sell-off that has dumped over $1 billion worth of BTC into the market, the price of BTC has steadily recovered to a high of $58,000 after hitting a low of $53,900.
Ante explains that ongoing events raise questions about whether the Saxony government’s sales strategy is effective.
“Perhaps an auction or OTC would be more efficient. However, we can only speculate on this at the moment. If Bitcoin wants to fulfill its role as a global financial asset and digital gold, the market must be able to withstand such an event.” The Attorney General’s Office reportedly seized nearly 50,000 BTC, leaving only 13,110 BTC worth $770 million. This reportedly caused the German government to lose its status as a BTC billionaire.
Arkham Intelligence data shows the remaining BTC funds in the German government (BKA) wallet. Source: Arkham Intelligence
§ 111p of the Code of Criminal Procedure (StPO) outlines the procedures and regulations for the emergency sale of confiscated or seized items during a criminal investigation in Germany. It details that items confiscated under § 111c or seized under § 111f may be sold if there is a risk of substantial loss of value, a threat of damage or costs or difficulties associated with storage, care or maintenance.
Bitcoin Market Narrative and Sentiment
The BTC sell-off during the German government’s speech came as Mt. Gox reportedly launched its long-awaited repayment to creditors in BTC and Bitcoin Cash (BCH).
Discussing market narratives and sentiment, Ante said ongoing events “may be forgotten in a few months, while new events like the Mt. Gox payments may become the subject of debate.”
“Such sales could lead to a broader distribution of Bitcoin ownership, so the entire event could be bullish for Bitcoin in the medium term.”
At the time of writing, BTC is trading at $58,545, with a total cryptocurrency market cap of $2.15 trillion, having gained 1.39% in the past 24 hours.
