German Government’s $2B in BTC Holdings Making Investors Jittery

For the past few weeks, the government of Germany has been offloading a significant amount of Bitcoin, contributing to the crypto’s recent downturn. In June, the Federal Criminal Police Office (BKA) started selling Bitcoin, originally seized from a defunct movie piracy website, from a wallet they control. The BKA sold 900 Bitcoins last month, valued at around $52 million. Additionally, last week, the government sold 3,000 Bitcoins worth approximately $172 million, and just this Monday, another 2,739 Bitcoins were sold for about $155 million.

The German government has been transferring its Bitcoin holdings to various exchanges such as Bitstamp, Kraken and Coinbase.

The sales have coincided with a sharp drop in Bitcoin’s value. Last week, Bitcoin’s price fell below $55,000, marking its lowest point since February, according to CoinGecko. During the week, the market capitalization of all cryptocurrencies fell by more than $170 billion.

The liquidation of Bitcoin in Germany is not the only problem facing cryptocurrency investors. The market is also feeling the impact of repayments from the Mt. Gox exchange, which collapsed in 2014. Nobuaki Kobayashi, Mt. Gox’s trustee, recently announced that some creditors are now receiving reimbursements in BTC and BTC cash through approved exchanges.

While the sales of Bitcoin worth millions of dollars — or even hundreds of millions — may appear significant, these sales are quite small in relation to the total amount of Bitcoin available. There are approximately 19.7 million BTC in circulation, worth about $1.1 trillion.

Despite the recent downturn, Bitcoin’s price has surged by 89% during the past 12 months.

Earlier this year, police in Saxony, a state in eastern Germany, seized nearly 50,000 BTC, valued at around $2.2 billion at the time, from Movie2k.to, a piracy website. The seizure was described as the largest BTC confiscation by law enforcement in Germany.

Arkham Intelligence reports that the seized BTCs, originally taken in 2013, were transferred to a wallet controlled by the BKA. As of now, the BKA holds approximately 32,488 Bitcoins, worth around $1.9 billion at current market prices.

Not everyone agrees with the government’s decision to sell its BTC reserves. German Bundestag member Joana Cotar argued that the government should hold onto Bitcoin as a tactical reserve currency rather than sell it. She raised her concerns last month in a post on X while also writing to several officials, including Saxony Minister President Michael Kretschmer, Finance Minister Christian Lindner and German Chancellor Olaf Scholz, describing the transaction as counterproductive and unwise.

Cotar also invited the government officials to attend a lecture by renowned Bitcoin advocate Samson Mow; the lecture is scheduled for Oct. 17, 2025, at the Paul-Lobe-Haus building in Berlin.

Major actors in the crypto space, such as Canaan Inc. (NASDAQ: CAN), will be watching to see how further BTC liquidations by the German government will affect the overall market of cryptos.

About CryptoCurrencyWire

CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.CryptoCurrencyWire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer

CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com

CryptoCurrencyWire is powered by IBN

Archives

Select A Month

Official NewsWire Relationships

Anarchapulco Main Event Blockchain Africa Conference Blockchain Futurist Conference Blockchain Life Conference Blockchain Shift Coingenius Coinvention CryptoBlockCon CryptoFest European Blockchain Convention EVOLV - evolve.events Finovate nftexpoverse Paris Blockchain Week The North American Bitcoin Conference Virtual Blockchain Week The Voice of Blockchain World Crypto Conference

CryptoCurrencyWire Currently Accepts

Bitcoin

Bitcoin

Bitcoin Cash

Bitcoin Cash

Doge Coin

Dogecoin

Ethereum

Ethereum

Litecoin

Litecoin

USD Coin

USD Coin

Contact us: 512.354.7000