Summary:
The German government is continuing to sell off Bitcoin, with the latest move seeing them unload another $354 million worth of BTC.
These funds were seized from the illegal streaming portal Movie2k and are being distributed to the state budget of Saxony.
Dr. Lennart Ante, CEO of Blockchain Research Lab, suggested that auctions or OTC deals could be a more efficient way to sell the Bitcoin.
Despite the sell-off, Bitcoin's price has been steadily rising, currently trading at $58,545.
Some argue that the sell-off will lead to broader distribution of Bitcoin ownership, potentially benefiting the cryptocurrency in the long run.
German Government Dumps Bitcoin, Adding to Market Volatility
The German government is continuing to sell off Bitcoin, with the latest move seeing them unload another $354 million worth of BTC. This follows an earlier sale of 3,100 BTC worth $178 million.
The funds, seized from the illegal streaming portal Movie2k, are being distributed to the state budget of Saxony, with victims of the portal potentially having a claim to some of the proceeds.
Dr. Lennart Ante, CEO of Blockchain Research Lab, explained that the government's sales strategy might not be the most efficient, and that auctions or over-the-counter (OTC) deals could be more effective.
Despite the ongoing sell-off, Bitcoin's price has been steadily rising, currently trading at $58,545. The German government has sold over $1 billion worth of Bitcoin since July 9th, bringing their remaining holdings down to roughly $770 million.
Some argue that the sell-off will lead to broader distribution of Bitcoin ownership, potentially benefiting the cryptocurrency in the long term.
Market Implications
The German government's Bitcoin sell-off coincides with the long-awaited repayment of Bitcoin and Bitcoin Cash (BCH) to creditors of the Mt. Gox exchange. Dr. Ante believes that this event may be overshadowed by the Mt. Gox payouts, and that the sell-off itself could have a positive impact on Bitcoin in the long run due to wider distribution of ownership.
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