- Germany’s Bitcoin wallet dipped below 5,000 BTC on July 11 due to a transfer of 10,620 BTC worth around $615 million.
- Germany’s Bitcoin holdings are down to 9,094 BTC, only 18% of the 49,857 BTC seized from Movie2k in January.
- The Crypto Fear & Greed Index fell into the “Extreme Fear” zone for the first time since January 2023 due to these transfers and market concerns.
Germany’s Bitcoin wallet witnessed notable fluctuations on July 11, initially dipping below 5,000 BTC due to significant transfers amounting to 10,620 BTC, equivalent to around $615 million, made to several cryptocurrency exchanges, including Coinbase, Bitstamp, and Kraken, and two anonymous addresses. However, shortly after these transactions, some funds were transferred back to the German government’s wallet bringing Germany’s Bitcoin holdings back to just above 9,000 BTC.
The Bitcoin in question was seized from the film pirating website Movie2k in January, and since June 19, the German government has been actively transferring out billions in Bitcoin. The transfers increased in frequency at the beginning of July.
Currently, Germany’s Bitcoin wallet holds only 18% of the 49,857 Bitcoin initially seized. This activity has drawn attention to the anonymous addresses involved. Blockchain intelligence firm Arkham noted that the addresses likely belong to institutional deposit or over-the-counter trading service providers, though this has not been confirmed.
The extensive sell-off has not been well-received by all after Joana Cotar, a German lawmaker and Bitcoin activist, criticized the move. She suggested that Bitcoin could have been adopted as a “strategic reserve currency” to protect against risks in the traditional financial system.
Meanwhile, Ordinals users expressed their frustration through an inscription, translating to “Taxes are robbery,” highlighting the discontent among some members of the cryptocurrency community regarding the sell-off.
These events have contributed to a decline in Bitcoin prices, with concerns about the sell-off and worries over Mt. Gox distributing more than $8 billion of Bitcoin to its creditors negatively impacting the market. With Bitcoin trading at $56,870, down 1.8% over the previous 24 hours and 15.1% over the last month, the Crypto Fear & Greed Index has therefore reached the “Extreme Fear” zone for the first time since January 2023.
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