Bitcoin Selling Spree in Saxony

The state of Saxony in Germany is rapidly depleting its bitcoin (BTC) reserves as it continues to transfer confiscated assets to various crypto exchanges and brokers. On Thursday, German authorities moved a total of 10,567 BTC – valued at over $600 million – in multiple transactions to platforms such as Bitstamp, Coinbase, Kraken, Flow Traders, and Cumberland DRW, as revealed by blockchain data from Arkham Intelligence.

Following these transactions, the wallets associated with the authorities now hold only 4,925 BTC, amounting to $285 million at current prices. This marks a significant decrease from the initial 50,000 BTC – worth nearly $3 billion – that was available for sale three weeks ago.

At the current pace, it is anticipated that Saxony’s bitcoin selling spree could come to an end as early as Friday or in the following week. This estimation is based on the fact that approximately 35,000 BTC have been offloaded this week alone.

It is worth noting that the total figures may vary due to the unusual practice of the wallets sometimes receiving a portion of the transferred assets back from exchanges and brokers, often in the range of $10 million, before the daily transactions conclude. Greg Cipolaro, the head of research at digital asset manager NYDIG, described this on-chain activity as “perplexing” in a recent note.

The imminent conclusion of Saxony’s $3 billion selling spree is expected to alleviate concerns among crypto investors who have been closely monitoring the movements of potential large sellers in the market. Recent market downturns have been attributed to worries about oversupply.

NYDIG’s Cipolaro suggested that fears regarding sell pressure may have been exaggerated, as the decline in bitcoin’s value has surpassed the impact of potential selling scenarios materializing. The recent corrections in bitcoin’s price coincided with the U.S. government transferring $240 million worth of Silk Road-related BTC to Coinbase and Mt. Gox beginning repayments to creditors with 140,000 BTC after a decade-long wait.