German Authorities Miss $5B Bitcoin Linked to Movie2K

Arkham Intelligence reported on September 6 that the German government failed to seize over 45,000 Bitcoins (~$5 billion) linked to the pirated movie website Movie2K.

This revelation could affect the Bitcoin market significantly if these large-scale holdings are liquidated, potentially impacting prices and market dynamics.

45,000 Unseized BTC Could Shift Market Dynamics

Arkham Intelligence’s recent findings revealed that 45,000 Bitcoins associated with Movie2K operators remain unseized by German authorities. In 2024, officials reportedly seized 49,858 Bitcoins, which they sold for $2.89 billion. However, over 100 wallets holding these dormant funds still exist from 2019.

Market reactions could see considerable volatility if these Bitcoins enter circulation, impacting BTC’s price given current trading volumes. Despite this, German authorities have not formally acknowledged any plans concerning these unseized assets, maintaining a status quo that piques investor interest.

Community reactions include Arkham’s public disclosure, which emphasized that these wallets have remained inactive since their initial seizure. This revelation led to speculation regarding potential security implications and the government’s future actions.

Implications of a Potential $5B Bitcoin Liquidation

Did you know? In 2024, when the German government sold 49,858 Bitcoins seized from Movie2K, the asset’s price eventually doubled. If another large sale occurred now, it could potentially drive short-term market fluctuations before stabilizing.

Bitcoin currently trades at $110,958.50, with a market cap over $2.21 trillion, as per CoinMarketCap. The asset has shown moderate volatility with a 5.18% increase over 90 days. While its 24-hour trading volume stands at $58.49 billion, dropping by 5.42%, its circulating supply nears its max at about 19.92 million tokens.

Analysts from Coincu suggest that liquidating 45,000 Bitcoins could pressure prices due to market saturation. They foresee potential enhanced regulatory frameworks and security measures as authorities assess the ramifications. This conservative outlook roots in past sales, where BTC’s market resilience absorbed similar volumes over time.