German Government Continues Offloading Seized Movie2k Bitcoins, Adding Selling Pressure on BTC Market
- PHPzOriginal
- 2024-07-17 04:17:56299browse
On-chain data shows that the German government still holds almost 24,000 BTC ($1.42 billion). Further data shows they are still looking to offload more
The German government is still offloading its Bitcoin (BTC) holdings, adding selling pressure on the crypto. However, on-chain data shows that the government has no choice but to sell the BTC, which was seized earlier this year.
How Much Bitcoin The German Government Owns
Data from on-chain analytics platform Arkham Intelligence shows that the German government still has almost 24,000 BTC ($1.42 billion) in its possession. Further data shows that the government is still preparing to sell more of its holdings, having shifted over 1,100 BTC to crypto exchanges and market makers in the last 24 hours.
Specifically, the German government shifted over 800 BTC to the crypto exchange Kraken.
But while the German government’s actions have certainly put downward pressure on the market, a recent report by Coindesk shows that the government has no other option but to offload the BTC holdings. The bitcoins are part of the nearly 50,000 BTC that were seized from the operator of the pirated movie website Movie2k earlier this year.
Interestingly, the movie website was found guilty of money laundering and other illegal activities by a particular state in Germany, Saxony. Dr Lennart Ante, co-founder and CEO of German-based Blockchain Research Lab, explained to Coindesk that the Saxony government is required to sell the bitcoins by standard procedure.
Lennart said that the general prosecutor’s office of Saxony is usually responsible for liquidating confiscated assets, and they are mandated to liquidate them within a certain period. He added that the reason why the police agency and not Saxony itself is initiating these sales is probably because they were involved in the initial investigation and are more experienced in moving and offloading such a large amount of bitcoin. However, it is clear that the police agency is simply acting under the instructions from Saxony.
Institutional Investors Bought The Bitcoin Dip For The Third Consecutive Day
As the German government continues to sell its Bitcoin holdings, institutional investors have seen this as an opportunity to buy the dip and accumulate more BTC. Data from Farside investors shows that the Spot Bitcoin ETFs recorded their third consecutive day of net inflows on July 9.
These funds saw a total net flow of $216.4 million. On July 8 and 5, they had recorded net inflows of $294.8 million and $143.1 million, respectively. This marks a change of pace for these Spot Bitcoin ETFs, which were earlier experiencing mixed flows.
The mixed flows suggested that institutional investors were on the fence about committing to buying more Bitcoin.
However, BTC’s recent dip seemed to have presented an opportunity that these institutional investors couldn’t pass up. Their actions have had a positive impact on the flagship crypto’s price with Bitcoin almost at $60,000 again.
At the last check, Bitcoin was trading at around $59,000, up over 3% in the last 24 hours, according to data from CoinMarketCap.
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