Germany Offloads Bitcoin Stockpile Amid Market Dip; El Salvador Steadily Accumulates

Germany Sells Bitcoin Amid Price Drop

The German government has recommenced the sale of its seized Bitcoin assets following a recent dip in the cryptocurrency’s price. As Europe’s largest economy, Germany is offloading parts of its substantial $3 billion Bitcoin stockpile, initially seized from the movie piracy website Movie2k.to in 2020. In January, German authorities confiscated 50,000 BTC from the site, marking the most extensive Bitcoin seizure by law enforcement in the country’s history.

Last week, Germany sold around $325 million worth of Bitcoin, with further sales expected. Recently, the government transferred 200 BTC to Coinbase and another 200 BTC to Kraken.

El Salvador Continues to Accumulate Bitcoin

El Salvador remains steadfast in increasing its Bitcoin holdings since it declared the cryptocurrency as legal tender in September 2021. The country now holds about 5,748 BTC, valued at approximately $360 million. This accumulation is a result of direct purchases, mining activities, and investments from foreign entrepreneurs attracted by El Salvador’s crypto-friendly policies.

The Salvadoran government continues to add to its Bitcoin reserves, including a policy of buying 1 BTC daily. Despite market fluctuations, President Nayib Bukele has been firm about not selling the country’s Bitcoin, even as its value rises. Recently, Bukele highlighted that El Salvador’s Bitcoin investments have appreciated by more than 40%.

Bitcoin Dips Below $60,000

Germany’s Bitcoin sell-off coincides with a temporary price drop of Bitcoin, which briefly fell below $60,000. Additionally, the impending distribution of Bitcoin to former customers of the defunct Mt. Gox exchange could further impact the market. This distribution might release up to 140,000 BTC, valued at up to $9 billion, into the market starting in July.

Concerns about potential selling pressure from this influx are mitigated by the fact that creditors have had years to liquidate their claims if needed. Despite this, digital asset investment products saw a second consecutive week of outflows, totaling $584 million, largely driven by investor pessimism regarding potential interest rate cuts by the Federal Reserve.