The German state of Saxony is rapidly depleting its Bitcoin reserves, transferring another batch of consolidated assets to crypto exchanges on Thursday. 📉

Earlier this year, the government seized Bitcoins from movie piracy site Movie2K and auctioned off BTC worth approximately $3 billion.

On Thursday, Bitcoin wallets affiliated with German authorities transferred 10,567 BTC (about $600 million) to various organizations, including Bitstamp, Coinbase, Kraken, Flow Traders, and Cumberland DRW.

According to Arkham Intelligence's blockchain data, these transactions occurred in multiple batches throughout the day. The wallets now hold just 6,894 BTC ($394 million), which is a drop from almost 50,000 BTC when they started selling three weeks ago.

At this pace, it may be possible for Germany to complete the sell-off on Friday or early next week, considering they've offloaded around 35,000 BTC this week alone.

The German government's Bitcoin sale has made headlines over the past few weeks, leaving crypto investors worried about its impact on the market. Many attributed the recent decline in asset prices to fears of an oversupply.

Bitcoin is trading at $57,281, down 6% in the last week and 15% in the last month. Meanwhile, a series of bear events has pushed the Crypto Fear and Greed Index, an indicator that tracks market sentiment, into "Extreme Fear" territory for the first time since January last year. 🐻