• The German government transferred over 10,627 Bitcoins to exchanges and market makers on Thursday.
• These transfers are part of a strategy to offload 50,000 bitcoins seized from the defunct Movie2K website.

The German government is depleting its bitcoin (BTC) reserves rapidly after transferring another set of its seized assets to cryptocurrency exchanges and brokers on Thursday. The transactions involved over 10,627 bitcoins, which are estimated to be worth around $615. 3 million. 

Multiple Exchanges Receive Substantial Bitcoin Amounts

The German government transferred 1,125 BTC to three exchanges: Bitstamp, Kraken, and Coinbase, each receiving 375 bitcoins valued at $21.8 million. An additional 1,000 BTC valued at $58.1 million was sent to a wallet associated with the B2C2 Group, according to Arkham. Another $14. 5 million in 250 bitcoins were transferred to an OTC service institutional deposit address with the label “bc1qu.” 

Later, 152 bitcoins valued at $8.9 million were transferred to crypto trading firm Cumberland DRW, and another 100 bitcoins valued at $5. 9 million an hour later. A few hours later, 1,500 BTC worth of $88. 2 million were sent to B2C2 Group a few hours later. 

The German government transferred 500 bitcoins for $29.4 million to Bitstamp, 300 bitcoins for $17.6 million to Coinbase, and 200 bitcoins for $11.7 million to Kraken. Another 500 bitcoins worth $29.4 million were transferred to the “bc1qu” address. 

Further transfers included 2,000 bitcoins worth $114.8 million to market maker Flow Traders, 1,000 bitcoins valued at $57.2 million to B2C2 Group, 700 bitcoins worth $40.1 million to Bitstamp, 400 bitcoins valued at $22.9 million to Coinbase, and 400 bitcoins worth $22.9 million to Kraken. An additional 500 bitcoins, valued at $28.6 million, were sent to the “bc1qu” address.

Criticism Emerges Over Government’s Bitcoin Strategy

Recent transactions by the German government follow a strategy to offload 50,000 Bitcoins that were seized from the defunct film piracy website Movie2K in January this year. The transfers are in line with the company’s current process of disposing of these assets. However, independent Bundestag member and bitcoin supporter Joana Cotar criticized the strategy, saying that it is counterproductive. The government has still continued with the sales. 

The government transferred over 10,853 BTC, worth $637.7 million at the time, to similar entities on Wednesday. Of the 2,422 BTC valued at $142 million, were returned, apparently not sold, under a sale agreement. 

Germany’s actions have not only affected the market but have also elicited responses from the cryptocurrency fraternity. An Ordinals user wrote a message saying, “Taxes are robbery,” which is similar to the opinion that many people hold regarding the government’s actions regarding Bitcoin.

The sale, along with concerns about Mt. Gox beginning to distribute over $8 billion in Bitcoin to its creditors, has significantly driven down BTC prices in recent weeks. These bearish developments have pushed the Crypto Fear & Greed Index, which monitors market sentiment, into the “Extreme Fear” territory for the first time since January 2023.

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