German State of Saxony Running Out of Bitcoin (BTC) to Sell as Assets Move to Crypto Exchanges
The German state of Saxony is rapidly depleting its bitcoin reserves as it continues to sell off confiscated assets, with over $600 million worth of BTC transferred to various crypto exchanges and brokers on Thursday alone.
According to blockchain data by Arkham Intelligence, a total of 10,567 BTC was moved in multiple batches to platforms such as Bitstamp, Coinbase, Kraken, and others. This brings the total amount of bitcoin held by the German authorities to just 4,925 BTC, down from the initial 50,000 BTC worth nearly $3 billion when the selling spree began three weeks ago.
At the current pace, Germany’s bitcoin selling spree could come to an end as soon as Friday or early next week, with approximately 35,000 BTC unloaded this week alone. However, there is a possibility that the tally could change due to the unusual practice of the wallets receiving a portion of the transferred assets back from exchanges and brokers before the end of the day.
The impending conclusion of Germany’s massive selling spree may ease concerns among crypto investors who have been closely monitoring the on-chain movements of potential large sellers in the market. The recent downturn in asset prices has been attributed to fears of a supply overhang caused by these large sell-offs.
Greg Cipolaro, the head of research at digital asset manager NYDIG, described the on-chain activity as “perplexing” and suggested that fears of sell pressure may have been exaggerated. Despite the significant decline in bitcoin’s price over the past month, Cipolaro believes that the impact of all potential selling may not be as severe as initially feared.
With the U.S. government also selling off seized bitcoin and the Mt. Gox estate beginning repayments to creditors, the market has been on edge about the potential impact of these large sell-offs. However, the conclusion of Germany’s selling spree could provide some relief to investors and help stabilize the market in the coming days.
