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German State Ends BTC Sale, as Market Experiences Uptick
- One of the biggest Bitcoin liquidations in history has drawn to a close, with the German State Government Saxony finalising its last sales.
- The move came as State authorities seized a whopping AU $4b worth of Bitcoin from movie pirating site Movie2k.to.
- Unfortunately, the State’s legislation required any assets seized by law enforcement to be liquidated.
- However, with sell pressure finally easing, Bitcoin has steadied to post nearly 10% gains over the past week.
One of the biggest factors behind Bitcoin’s late June slump has come to an end, with the German Government finally completing its BTC liquidation. The price of Bitcoin fell to as low as US $53k (AU $78k) amid the mass sell-off, with the monthly low coming immediately after 1,300 BTC (valued at over AU $100m) was moved to Bitstamp by the German government.
Related: German State Continues Selling BTC, Has Now Sold Almost 75% of Its Total Supply
German Sell-Off Mandatory Part of Legal Proceedings
Despite constant complaints on X (formerly Twitter) from the community, the German government wasn’t making amends for a bad investment. In fact, the German Federal Government had very little to do with the move at all.
Earlier this year, approximately 50,000 Bitcoins, (worth over AU $4b) were seized during a raid of pirate film site Movie2k.to by German authorities in the state of Saxony. Due to local regulations that require seized assets to be liquidated, the local authorities had no choice but to sell the billions worth of Bitcoin once legal proceedings had concluded.
This directly resulted in a steady sell-off, flooding the market with thousands of new BTC and adding downward price pressure due to the sudden increase in supply.
Things were made worse as investors started to panic about a similar scenario unfolding with the Mt. Gox repayments.
Bitcoin Back on Track After Impressive Weekend
The fear that has permeated the market over the past month can finally start to ease. Germany’s mass sale has come to a close, relieving some of the downward pressure on Bitcoin’s price thanks to disproportionate supply hitting the market.
Although the Mt. Gox repayments are still to fully take place, payouts are well and truly underway and the worst of the supply shock may be over. On top of this, many analysts suggest this will impact the price of Bitcoin Cash, not Bitcoin itself, leaving the first-ever cryptocurrency free to continue its bull run toward a new ATH.
Related: Australian and Hong Kong Bitcoin ETFs With Record Inflows as Second Fund Starts Trading
The Bitcoin market was quick to take advantage of its newfound stability, rising back above US $60k (AU $89k) over the weekend.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
