Despite being bombarded by various parties and the cryptocurrency community, the German government has continued to sell Bitcoin and sent another 1,000 Bitcoins to exchanges yesterday, expecting to sell them for cash.
Data tracked by blockchain data analysis platform Arkham Intelligence showed that the German Federal Criminal Police Office (BKA) sent 250 bitcoins to each of the two exchanges at around 3 pm today.
At the same time, the German authorities also sent 500 bitcoins to an unknown address starting with "139PoP". Although the holding entity of this address has not been identified, it is likely to belong to a cryptocurrency exchange or over-the-counter trading service, which has received bitcoins from the German government's wallet many times in the past.
The German government’s move of Bitcoin has been a focus of market attention as large sales could affect the price of cryptocurrencies. According to tracking, the German government currently holds 38,826 Bitcoins in known wallet addresses, totaling $2.17 billion.
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Why does Germany have $2 billion worth of Bitcoin? I checked the data and it shows the following:
In January, police in the German state of Saxony announced the seizure of nearly 50,000 bitcoins, worth about $2.2 billion at the time, from the operators of the movie piracy website Movie2k.to and transferred to a crypto wallet under the German Federal Criminal Police Office.
Saxony police called the bitcoin seizure "the largest bitcoin seizure by law enforcement agencies in the Federal Republic of Germany to date."
Today, Germany's BKA holds approximately 32,488 bitcoins. Based on current prices, the bitcoins held by the German government are worth approximately US$1.9 billion.
The German authorities' massive sell-off of Bitcoin not only caused a sharp rise in market panic, but also drew condemnation from German MP Joana Cotar, who said, "The United States is already discussing considering Bitcoin as a strategic reserve currency, but our government is selling Bitcoin on a large scale," and stressed that this approach is not only "unwise" but may even be "counterproductive."
In order to prevent the German government from dumping the market through exchanges, Tron founder Justin Sun also boldly proposed to purchase all of the German government’s bitcoins off-market to minimize the impact on the market.
According to some observers, Germany’s move to sell Bitcoin is a strategic mistake that puts it at a geopolitical disadvantage. Blockware Intelligence mentioned in its July 5 newsletter:
Foolishly, the German government has transferred over $390 million worth of Bitcoin to exchanges in the past few weeks, ready to sell for fiat currency. From a geopolitical perspective, it would be a strategic mistake for any country to convert Bitcoin into fiat currency, as fiat currency can be printed out of thin air.
In comparison, it is much more difficult to obtain Bitcoin because mining requires a lot of energy and the supply of Bitcoin is capped at 21 million.
According to Coingecko's market quotes, Bitcoin continued its decline today and was trading at $56,444 at press time, down 1.7% in the past 24 hours.
