German Government Transfers Additional $56 Million in Bitcoin

On July 8th, the German government continued its transfer of Bitcoin to exchanges, moving over $56 million worth in several transactions.

Blockchain data shows that government-associated addresses transferred 500 Bitcoin to Bitstamp and Coinbase (250 Bitcoin each) at 14:48 UTC+8, valued at approximately $27.9 million, and an additional 500 Bitcoin to an unidentified address.

Germany seized nearly 50,000 Bitcoin in 2013 from the operators of the defunct piracy website Movie2K. This holdings is now valued at about $2.3 billion.

Since June, the government has moved around $390 million in Bitcoin to various platforms, suggesting a possible strategy to liquidate parts of its reserves. Although the motivations are unclear, these sales have contributed to Bitcoin's price volatility, which fell below $55,000 last week.

Despite these transactions, the amounts moved represent a small fraction of Germany's substantial holdings. Following the latest transfers, the government retains about 40,000 Bitcoin, worth nearly $2.2 billion.

However, these remaining reserves still account for a significant share of daily Bitcoin trading volumes. Experts warn of potential continued market instability as long as Germany remains active in reducing its Bitcoin exposure.

These liquidations coincide with the anticipated creditor payouts from the 2014 Mt. Gox collapse, which may further increase selling pressure on Bitcoin.