The German government has been selling off its Bitcoin holdings, and it’s causing a stir in the crypto world.
Thousands of Bitcoin Sold
The government, through the Bundeskrimanalamt (BKA), has been steadily selling off its Bitcoin, with the latest move seeing over 6,306 BTC transferred. This amounts to roughly $362 million worth of Bitcoin. The transactions were sent to various exchanges and institutional wallets, including Kraken, Cumberland, and 139Po.
Why the Sell-Off?
The government’s Bitcoin strategy has been criticized by some, with Joana Cotar, a member of the German parliament, calling it unreasonable and ineffective. However, the government continues to offload its Bitcoin, despite these criticisms.
The Impact on Bitcoin’s Price
The government’s massive Bitcoin sales have had a noticeable impact on the cryptocurrency’s price. Bitfinex, a major crypto exchange, noted that the sell-off contributed to a 16% drop in Bitcoin’s value last week.
Are Institutions Still Buying Bitcoin?
While the German government is selling, some major institutions are still buying Bitcoin. VanEck, a financial services firm, purchased Bitcoin on Monday, even as the price was declining. This indicates that some institutions remain confident in Bitcoin’s future.
Germany’s Remaining Bitcoin Holdings
Despite the recent sales, the German government still holds over 22,847 BTC, worth over $1.32 billion. This is significantly less than the amount of Bitcoin initially seized from the website Movie2k, but it still represents a substantial holding.
The German government’s Bitcoin sell-off is a major event in the crypto world. It’s causing a lot of discussion and speculation about the future of Bitcoin. It remains to be seen what impact this will have on the long-term trajectory of the cryptocurrency.
