In the midst of a recent decline in the price of cryptocurrencies, the German government has started selling off the assets it has seized.
The biggest economy in Europe, Germany, started liquidating some of its sizable $3 billion worth of Bitcoin.
2020 saw the seizure of these assets from the movie piracy website Movie2k.to.
According to a press release, the seizure of 50,000 Bitcoin by German police from the piracy website in January was the “most extensive security of Bitcoins by law enforcement authorities in the Federal Republic of Germany to date.”
With potential for more sales, the nation sold about $325 million worth of Bitcoin last week.
200 Bitcoin were recently moved to Coinbase by the German government, and 200 Bitcoin were moved to Kraken by the same wallet.
🔔 Breaking News: The German government has just transferred 200 BTC to Coinbase. Simultaneously, this wallet also moved 200 BTC to Kraken. This could lead to significant market fluctuations! 🚀📉#Bitcoin #CryptoNews #MarketUpdate #BTC #Germany pic.twitter.com/ImCwX3fHoT
— BoKuBu (@atrungbs87) June 25, 2024
El Salvador Keeps Accumulating
From September 2021, when El Salvador accepted Bitcoin as legal tender, the country has been gradually increasing its holdings of the cryptocurrency.
According to the most recent data, the nation possesses about 5,748 Bitcoin, which is worth about $360 million.
The nation’s Bitcoin hoard has grown as a result of direct purchases, mining, and investments made by foreign businesspeople looking to settle in the nation because of its crypto-friendly laws.
The Salvadoran government has systematically increased the amount in its Bitcoin treasury and has made it a daily policy to buy one Bitcoin.
This approach has persisted in the face of market volatility, indicating a dedication to long-term holding (“HODL”) of its Bitcoin holdings.
It is noteworthy that despite the fact that the value of the nation’s Bitcoin holdings has greatly increased, President Nayib Bukele has been outspoken in his support of keeping them.
Bukele recently stated that the value of the nation’s Bitcoin investments has increased by more than 40%.
Bitcoin Dips Below $60,000
The German government’s sell-off coincides with a brief decline in Bitcoin’s price, which went below $60,000.
Apart from the sell-off in Germany, another event that may have an effect on the market is the upcoming distribution of Bitcoin that is owed to customers who were previously of the now-defunct cryptocurrency exchange Mt. Gox.
Up to 140,000 Bitcoin could enter the market as a result of this distribution.
After numerous hacking incidents, Mt. Gox declared bankruptcy more than ten years ago. The company has stated that it will begin returning customer assets in July.
Estimates for the precise quantity of Bitcoin to be distributed range from 65,000 to 140,000 BTC, with a potential value of up to $9 billion.
Some contend that the impact of the influx of BTC may be exaggerated, despite concerns being expressed about possible selling pressure.
If creditors needed quick money, they had years to sell their claims, which might have lessened the impact on prices.
The total amount of outflows from digital asset investment products was $584 million, marking the second consecutive week of outflows.
One possible contributing factor is investors’ pessimism about future interest rate cuts by the Federal Reserve.
With just $6.9 billion traded globally on ETPs last week—the lowest levels since the introduction of U.S. ETFs in January—we also witnessed the lowest trading volumes on these instruments since then.