German Government’s Bitcoin Wallet Drops to 9,094 BTC After Major Transfers

German Government Reduces Bitcoin Holdings to 9,094 BTC Amid Crypto Market Turmoil

German government’s Bitcoin wallet has dwindled to 9,094 BTC, representing just 18% of its initial holdings, following a series of transactions to various crypto exchanges on July 11. This wallet, which has been in possession of Bitcoin seized from a film piracy website crackdown in January, has seen significant outflows since June 19, with intensified activity starting in early July.

Billions in Bitcoin Transferred to Crypto Exchanges

On July 11, the wallet temporarily dropped below 5,000 BTC after transferring 10,620 BTC, valued at approximately $615 million, to platforms including Coinbase, Bitstamp, Kraken, Flow Traders, and two anonymous addresses. According to blockchain intelligence firm Arkham, some of these funds were later transferred back to the government wallet, raising its holdings above 9,000 BTC. The current amount signifies that Germany now retains only 18% of the 49,857 BTC originally confiscated from the Movie2k film piracy site.

Potential Institutional Involvement in Transfers

Arkham suspects that the anonymous addresses ending in “139Po” and “bc1qu” may belong to institutional deposit or over-the-counter trading service providers, though this has not been confirmed. The aggressive sell-off strategy has faced criticism, notably from German lawmaker and Bitcoin advocate Joana Cotar, who recently argued that Bitcoin should have been adopted as a “strategic reserve currency” to mitigate traditional system risks.

Market Reactions and Sentiment

Public sentiment has also been affected, with one Ordinals user expressing frustration through an inscription translating to “Taxes are robbery.” This mass sell-off, coupled with concerns over Mt. Gox’s distribution of more than $8 billion worth of Bitcoin to its creditors, has contributed to a recent slump in BTC prices. These bearish developments have driven the Crypto Fear & Greed Index into the “Extreme Fear” zone for the first time since January 2023.

Current Bitcoin Price and Market Impact

As of the time of writing, Bitcoin is trading at $56,870, reflecting a 1.8% decrease over the last 24 hours and a 15.1% decline over the past month. The combined impact of Germany’s Bitcoin sales and other market pressures continues to influence the broader cryptocurrency landscape.

FAQ on German Government’s Bitcoin Wallet Transactions

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