KEY POINTS
- A Bitrue strategist said Germany may deem that BTC prices will 'soften for a while to come'
- One observer noted that the German government isn't worried about the dump since it can seize BTC 'forever'
- Germany seized 50,000 Bitcoins from a movie piracy website after the programmer 'voluntarily' forfeited the assets
Germany, known for seizing approximately $3 billion worth of Bitcoin assets from a movie piracy website, has unloaded hundreds of millions worth of the world's largest cryptocurrency by market cap, and the market isn't taking the news well.
Multiple outlets reported that the German government dumped some of its 50,000 BTC stack in a two-day sell-off spree last week. Data from prominent blockchain intelligence firm Arkham Intelligence shows that the German government's digital wallet dumped some $325 million worth of Bitcoin last week.
For Robert Quartly-Janeiro, the chief strategy officer at crypto exchange Bitrue, the German government is selling off its Bitcoin stash after "having seen a slippage in the price of BTC." He added that it appears the government "has taken a view that the price of BTC is to soften for a while to come."
Germany determined in mid-2020 that the movie piracy website movie2k.to amassed thousands of Bitcoins. At the time, the government announced that the seized BTC "were voluntarily handed over by the programmer [of movie2k.to] during his interrogation by the public prosecutor's office to compensate for damages," as per a Google translation of the government statement.
Ki Young Ju, the founder and CEO of crypto analytics firm CryptoQuant, revealed that the German government has the world's fourth largest seized BTC holdings after the U.S., China, and the United Kingdom.
Germany's seized Bitcoin holdings are the 4th largest. pic.twitter.com/Na8t4JCNxe
— Ki Young Ju (@ki_young_ju) June 20, 2024
News of the massive dump has become a key topic on X (formerly Twitter) in recent days, with observers and industry experts weighing in on the impact of the sell-off.
Value investor Mike Alfred said the German government's move sets a "new paradigm" in the realm of amassing and selling off cryptocurrencies. "They weren't invisible and didn't minimize slippage. They just dumped the Bitcoin like it was a body in the Las Vegas desert."
Germany sold $100M+ Bitcoin like a beginner trader. They weren’t invisible and didn’t minimize slippage. They just dumped the Bitcoin like it was a body in the Las Vegas desert. They only have $3B more. Unlike fiat, they can’t print it. They can only seize it. New paradigm here.
— Mike Alfred (@mikealfred) June 23, 2024
YouTuber @OhHaiAndy said it appears Germany is "trying to go backwards" with its latest move, also mentioning how the country shut down its three remaining nuclear power plants as part of its efforts toward renewable energy transition.
For @topGcrypti_, who has over 40,000 followers on X, Germany's BTC stash "is a double-edged sword," and while it has sold off a portion of the Bitcoins, "the surge in Bitcoin's price means their remaining holdings are now worth more."
One user said countries with massive BTC holdings "aren't so worried" since they know they can seize Bitcoin "forever." User @ModernInvest said BTC whales purchased $800 million worth of Bitcoins on the same day Germany let its $325 million go. "Prices are being pushed down to shake out the small holders," the user suggested.
On the other hand, the news appears to have affected the digital asset's price. The coin was trading at around $63,000 during the weekend from trading between $64,000 and $65,000 throughout the week. By late Sunday, Bitcoin slumped further to around $62,800 as per CoinGecko data. It has been down by over 5% in the last seven days and declined 2.5% in the last 24 hours.
