• Arkham Intelligence reports that Germany still has 23,800 BTC, worth $1.3 billion.
  • The selling pressure is equivalent to 5% bitcoin’s 24 hour trading volume.
  • Since mid-June, Germany has been reducing its coin stock.

According to data tracked by Arkham Intelligence, the Eurozone’s largest economy still has 23,800 BTC valued at $1.3 billion. The potential selling pressure of the pending coin stockpile represents almost 5% of BTC’s 24-hour trading volume, which is $25.3 billion. This suggests further price volatility.

The German Federal Criminal Police Office has seized 49.857 BTC in the first quarter of this year from Movie2k.to operators, a privacy site that was last active back in 2013. The government has sold over 10,000 BTC since mid-June. This has pushed down the price of the cryptocurrency. Today, it transferred a further chunk of its holdings.

According to CoinDesk, BTC’s price spot has fallen by almost 20% in just four weeks to $55,490. Prices have dropped nearly 13% over the last seven days. The CoinDesk 20 Index (CD20), a more general market indicator, has fallen by nearly 14% in just one week to 1,870.

Last week, Tron’s founder Justin Sun proposed to buy BTC off-market from the German Government to reduce the negative effect on the spot rate.

Some observers believe that Germany’s BTC sale is a strategic mistake, which puts the country in a geopolitical disadvantage.

“Foolishly the German government has transferred over $390 million in BTC to exchanges to be sold against fiat currency.” The Blockware Intelligence Newsletter, July 5, stated that selling bitcoins to fiat currencies is a mistake from a geopolitical standpoint.

The newsletter stated that bitcoin was much harder to obtain due to the enormous amount of energy required to mine it, and the limited supply of 21,000,000 coins.

UPDATE (8/7/15:28 UTC: Updates assets, values to account for asset transfers that have occurred since this story was first published. Adds today’s transfer into the third paragraph.

Parikshit Miishra is the editor.