Wow, the German government is making major moves in the crypto world! They've just sold off a whopping 88.4% of their original 50,000 Bitcoin stash, leaving just 5,800 BTC in their wallet. This bold move began on July 12, with transactions totaling 3,200 BTC spread across platforms like Bitstamp, Kraken, and Coinbase, each receiving 400 BTC. Additionally, significant amounts went to two undisclosed addresses.

Crypto analyst Michaël van de Poppe predicts they'll sell the remaining $300 million worth of Bitcoin today, July 12. This all stems from Bitcoin seized from a film pirating site back in January. Since June 19, the German government has been steadily offloading BTC, ramping up efforts this July.

Joana Cotar, a German lawmaker and Bitcoin advocate, isn't thrilled about this sell-off. She suggests that holding onto Bitcoin could have shielded against risks in the traditional financial system if adopted as a "strategic reserve currency."

The market's feeling the pressure from these big sales. With over 44,200 BTC already sold, the German government's actions are impacting Bitcoin's price. Recently, the wallet even dipped below 5,000 BTC after moving around $615 million worth of Bitcoin to various exchanges and addresses on July 11, as reported by Arkham analytics.

This, along with Mt. Gox potentially releasing $8 billion worth of Bitcoin to creditors, is creating uncertainty in the market and pushing prices down. It's a turbulent time in the crypto space, with governments and legacy financial systems making waves that ripple through Bitcoin and beyond.