Germany Executes 5,000 Bitcoin Sale: Government Reserves Near Complete Liquidation

The German government’s ongoing strategy to liquidate its Bitcoin holdings continues with a significant sale, reducing its reserves to below 5,000 BTC. These extensive sell-offs are part of the authorities’ efforts to dispose of Bitcoin seized during various criminal investigations, notably from the Movie2k case.

Over 90% of Bitcoin Sold from Government Holdings

Recent transactions highlighted by intelligence platform Arkham reveal another substantial Bitcoin sell-off by the German government. Data indicates that over 5,000 BTC, valued at $286 million, were transferred to Flow Traders, Coinbase, Kraken, and Bitstamp, as well as to wallet addresses 139Po and bc1qu.

UPDATE: The German Government is running out of Bitcoin.

The German Government just sent another 5000 BTC ($286.44M) to Flow Traders, Coinbase, Kraken, Bitstamp, 139Po and bc1qu.

Today, they have transferred 10627 BTC ($615.33M) in total to market makers and exchanges.

They… https://t.co/vXtHwzUieK pic.twitter.com/4bOI56BJgN

— Arkham (@ArkhamIntel) July 11, 2024

Notably, four hours before these transactions, the government executed several transfers to the address 139Po (potentially an institutional deposit or over-the-counter service), Cumberland, Coinbase, Bitstamp, and Kraken. Arkham reported that 3,250 BTC, worth $191 million, were transferred to cryptocurrency exchanges.

As of Thursday, the total Bitcoin sold by the authorities to market makers and crypto exchanges amounted to approximately 10,627 BTC, worth $615 million. Consequently, the government’s reserves now stand at about 4,925 BTC, just 9.9% of the total Bitcoin originally seized from the Movie2k operator.

Criticism from the Crypto Community

The government’s actions have sparked considerable debate within the crypto space. Many prominent figures have criticized Germany for its ongoing Bitcoin liquidation strategy. Earlier this week, Vivek Sen, a reporter at Bitcoin Magazine and founder of Bitgrow Lab, condemned the authorities, calling them “idiots.”

Sen argued that Bitcoin represents the hardest form of money and criticized the state for selling it for a currency that can be created out of thin air. He expressed his displeasure by labeling German government officials as “literal idiots.”

🇩🇪 Imagine selling the hardest money on earth #Bitcoin, for something you can print out of thin air.

Germany’s govt officials are literal idiots pic.twitter.com/TlWl3Z585E

— Vivek⚡️ (@Vivek4real_) July 9, 2024

BTC Spot ETFs See 5-Day Consecutive Inflows

Despite the German government’s large-scale Bitcoin sales, which have contributed to price declines, US Bitcoin Spot Exchange-Traded Funds (ETFs) have seen significant inflows recently, recording five consecutive days of profits.

According to analytics platform Sosovalue, US spot BTC ETFs witnessed a daily inflow of $78 million on Thursday, marking the fifth consecutive inflow day. Data shows that BlackRock ETF IBIT and Fidelity ETF FBTC recorded daily inflows of $72 million and $32 million, respectively, while the Grayscale ETF GBTC experienced another day of outflows, totaling approximately $37 million in losses.

With Thursday’s gains, the net inflow of BTC spot ETFs since their inception on January 11 now totals $15.5 billion, indicating growing adoption and interest in these products.

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