Germany Continues Bitcoin Liquidation, Transfers 700 BTC ($40.47M) to Crypto Exchanges

The German government has transferred 700 Bitcoins (BTC), valued at approximately $40.47 million. This transaction is part of an ongoing trend: the government has consistently sold its Bitcoin holdings since June.

The German government has transferred another 700 Bitcoins (BTC) to cryptocurrency exchanges, continuing a trend of selling its BTC holdings that began in June.

The latest batch of BTC, valued at around $40.47 million at the time of transfer, brings the total sold by the government to 13,466 BTC, worth about $819.3 million.

According to blockchain data analytics platform Lookonchain, the government still holds 39,826 BTC, valued at about $2.29 billion, based on current prices.

The government confiscated the Bitcoins during various criminal investigations, including cases involving film piracy sites, darknet marketplaces, and other illicit activities.

The German government had previously confiscated these Bitcoins during various criminal investigations, including cases involving film piracy sites, darknet marketplaces, and other illicit activities. Initially, the government held an estimated 39,826 BTC, valued at $2.29 billion.

The government’s BTC sales have put pressure on the cryptocurrency’s price, which has fallen over 7% in the last seven days.

Bitcoin fell to a two-month low on Monday amid uncertainty over the U.S. presidential election, the upcoming repayment of funds by the now-defunct Mt. Gox exchange, and selling pressure from struggling cryptocurrency miners.

Mt. Gox, once the world’s leading cryptocurrency exchange before its collapse in 2014, is set to begin repaying its creditors, having filed for bankruptcy seven years ago.

The exchange’s massive failure led to the loss of around 142,000 BTC, and now that the exchange is preparing to return the funds to its creditors, there are concerns that the influx of Bitcoin into the market could further depress prices.

Moreover, cryptocurrency miners are also facing financial difficulties as daily miner revenue has dropped by 75% since the April halving event, which reduced miner rewards.

In response to the dwindling revenue, miners have been selling their Bitcoin holdings to cover costs, contributing to the overall selling pressure.

Despite the current downturn, some analysts remain optimistic about Bitcoin’s long-term prospects.

“I think this is a period of consolidation. We could retest the March highs and go to $80,000. I’m still looking at a target of $100,000 by year-end,” said Tony Sycamore, a market analyst at City Index in a recent interview with Kitco News.

However, the near-term outlook remains uncertain, and investors will be watching closely for any dovish signals from the Federal Reserve, which could boost the cryptocurrency market.

At the time of writing, Bitcoin is trading at $56,797, having dropped over 20% in the last 30 days.