These sales include Mt. Gox’s repayments to its creditors create a significant supply pressure on the market, and experts warn of turbulence in the cryptocurrency market that may continue for a while.

The amount of Bitcoin that Germany still holds is enough to unsettle the market. According to data tracked by Arkham Intelligence, the Eurozone’s largest economy holds 39,826 BTC worth $2.2 billion.

This Bitcoin reserve is like a bomb waiting to be sold on the market and accounts for approximately 9% of the daily Bitcoin transaction volume ($25.3 billion). This indicates that there may be more volatility in Bitcoin prices as supply exceeds demand.

The story doesn’t end here. The real cryptos started with 49,857 BTC that Germany’s Federal Criminal Police Office (BKA) seized in early 2024 from the operators of Movie2k.to, a privacy website that ceased operations in 2013. Following this seizure, the German government has released a total of more than 10,000 BTC since mid-June, affecting Bitcoin prices downwards.

According to CoinDesk data, with the impact of these sales, Bitcoin’s spot price (instant transaction price) dropped by approximately 20% in the last four weeks, falling to $ 55,490. The decrease in the last week alone amounts to 13%. The CoinDesk 20 Index (CD20), which shows broader market movement, also fell to 1,870 points, a 14% drop in one week.

Following these declines, Tron founder Justin Sun, one of the leading names in the cryptocurrency market, made an offer to the German government to purchase an off-market Bitcoin to restore the balance of the market. This proposal aims to reduce the damage caused to the market by government sales.

But it’s not just about supply and demand. Some analysts consider Germany’s Bitcoin sales a big geopolitical mistake. The Blockware Intelligence newsletter included an article criticizing the government’s sales in its July 5 issue.

In the article, “The German government has transferred more than $390 million of BTC to exchanges to be sold with fiat currency over the last few weeks. From a geopolitical perspective, it is a strategic mistake to sell Bitcoin assets with fiat currency, considering that any nation state can print unlimited fiat money. Bitcoin’ Obtaining it is much more difficult due to the enormous physical energy required to mine it and the limited supply of 21,000,000.” statements were included.

Although it is not yet clear how long Germany’s Bitcoin sales will last and what impact they will have on the cryptocurrency market, it is certain that these sales leave an important question mark in the market. Experts warn investors to keep a close eye and monitor market movements carefully.