The German government has been selling off its Bitcoin stash, which has been putting downward pressure on the price of Bitcoin.
How Much Bitcoin Does Germany Hold?
According to blockchain analytics firm Arkham Intelligence, Germany still holds around 24,000 Bitcoin, worth about $1.42 billion. They’ve been transferring Bitcoin to exchanges and market makers, including over 800 Bitcoin to Kraken in the last 24 hours.
Why is Germany Selling?
The Bitcoin was seized from the operators of a pirated movie website, Movie2k, earlier this year. The state of Saxony found the website guilty of money laundering and other illegal activities.
German law requires confiscated assets to be liquidated within a certain time frame. The Saxony government is responsible for selling the Bitcoin, and they’ve tasked the police agency with handling the sale because they were involved in the initial investigation.
Institutional Investors Buy the Dip
While Germany is selling, institutional investors are buying Bitcoin. Spot Bitcoin ETFs have seen three consecutive days of net inflows, totaling $216.4 million on July 9th. This suggests that institutional investors see the recent dip in Bitcoin’s price as a buying opportunity.
Bitcoin Price Recovers
Bitcoin’s price has rebounded slightly after the recent dip, trading at around $59,000, up over 3% in the last 24 hours. The institutional buying appears to be helping to support the price.
