- Bitcoin’s price has continued to tumble overnight after the German government moved another 1,300 bitcoins to exchanges
- The MtGox trustee also sent 47,228 bitcoins to a new wallet ahead of creditor repayments
- This combination of fear and selling pressure has seen Bitcoin drop to $53,500, down $20,000 in the last month
Bitcoin’s price continued to tumble overnight as the German government moved another 1,300 bitcoins to exchanges and the MtGox trustee sent 47,228 to a new wallet ahead of creditor repayments. The potent combination of fear and selling pressure saw Bitcoin drop to $53,500, marking a drop of some $20,000 in the last month, leaving many wondering when the selling will stop.
Bitcoin Selloff Continues
Arkham Intelligence revealed yesterday that German authorities moved bitcoins valued at around $75 million to several prominent exchanges, including Bitstamp, Coinbase, and Kraken. This activity represents one of the most substantial Bitcoin transfers by the German government to centralized exchanges in recent weeks, moves that have spooked the market and contributed to the correction.
The bitcoins stem from a criminal investigation involving Movie2k.to, a now-defunct illegal streaming site, whose operators were involved in distributing over 880,000 pirated films between 2008 and 2013. As a result, they amassed significant Bitcoin holdings, with nearly 50,000 BTC confiscated by German authorities at the time of its closure, making it one of the largest seizures of its kind in the country.
Since then, the German government has been strategically offloading the stash. In a series of transactions last month, over $195 million worth of Bitcoin was moved to exchanges, and recent transfers indicate the continuation of this trend. Despite these sales, Germany retains a substantial Bitcoin reserve, estimated to be worth over $3 billion.
This strategy of converting seized digital assets into fiat currency aligns with the government’s broader objective of managing and liquidating assets obtained through criminal activities. However, such large-scale liquidations have significant market implications; analysts note that these sell-offs introduce considerable selling pressure, which can exacerbate market volatility and drive down prices.
MtGox Trustee Moved $2.7 Billion in BTC
The last month has seen significant sell pressure, with Bitcoin dropping from $72,000 in the first week of June to $53,500 overnight, exacerbated by the knowledge that 140,000 bitcoins, worth $9 billion, will soon be winging their way to MtGox creditors around the world. This seems to be imminent, with the trustee moving 47,228 BTC worth $2.7 billion at the time from cold storage to a new wallet.
While there is no indication that there is an appetite to sell, this move represents a gathering of the storm clouds for Bitcoin holders, at least in the short term.
