The German government has received back a significant portion of bitcoin(BTC) it attempted to sell through exchanges and market makers. On Wednesday, German authorities sent over 10,853 bitcoins, valued at roughly $637.7 million at the time, according to data from Arkham Intelligence. However, by late Wednesday night, Germany’s designated wallet for these transactions saw an influx of 2,442 bitcoin, with an estimated value of $141 million.
The returned bitcoins originated from various sources. Kraken, a prominent cryptocurrency exchange, sent back 903 bitcoins (worth $52.3 million), while unidentified addresses contributed 1,529 bitcoins (valued at $88.6 million). A minor inflow of 10 bitcoins ($575,000) came from Bitstamp, another cryptocurrency exchange.
Experts believe these returned bitcoins likely represent unsold portions of a potential sale agreement between the German government and the involved entities. Steven Zheng, Research Director at The Block, suggests this as the most probable explanation for the reversal.
Also Read: BlackRock IBIT ETF Inhales 5,000+ Bitcoin As Spot Bitcoin ETF Inflows Surge 300% In 2 Days
This development comes amidst the German government’s plan to offload 50,000 bitcoins confiscated from the now-defunct movie piracy website Movie2K in January. The large-scale sale has drawn criticism from some within Germany, including Joana Cotar, a member of the German Bundestag and a vocal proponent of bitcoin(BTC). Cotar argues that the government’s hurried sale, without a well-defined bitcoin strategy, is counterproductive.
The price of bitcoin(BTC) has experienced a slight decline of nearly 2% as of this writing, according to The Block’s Bitcoin Price Page. It remains to be seen whether the German government will continue its attempts to sell the remaining confiscated bitcoins or pursue a different approach.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
