German government continues liquidation of Bitcoin
The German government has transferred another 2,375 bitcoins, worth approximately $138 million, to exchanges. This continues a months-long process of liquidating seized reserves originally acquired in 2013 following the seizure of nearly 50,000 bitcoins by the Federal Criminal Police Office (BKA) from the now-defunct piracy website Movie2K.
Selling Bitcoin affects price
Since mid-June, Germany has been steadily selling over 25,000 bitcoin, worth about $1.5 billion. The recent transfers leave the government with about 13,100 bitcoin, worth $765 million. The sales have contributed to a decline in bitcoin's price, which fell below $55,000 in July due to heavy selling pressure. Analysts suspect that as the government's bitcoin reserves dwindle, the selling pressure will ease, potentially leading to price stabilization.
Predictions and criticism
Experts predict that at the current rate, Germany's bitcoin holdings could be completely liquidated by September. The sales have sparked criticism from bitcoin supporters in the German Bundestag, who argue the government should keep the digital currency rather than convert it into euros.
Positive price development for Bitcoin possible
Despite the controversy, the liquidation has netted Germany over $1.5 billion. As the end of the government's Bitcoin reserves approaches, market conditions could change, potentially leading to positive price action for Bitcoin.
