Crypto Market Recovers as Germany Gets Back $200M Worth of BTC from Exchanges
The crypto market saw a boost in sentiment on Tuesday as a German government entity received over $200 million worth of the asset back from various exchanges.
During Asian morning hours, Bitcoin was trading just above $57,300, reflecting a 3.5% increase over the past 24 hours.
Other major tokens also experienced gains, with Solana’s SOL surging by as much as 6% and Ether (ETH) climbing back above $3,000. Even dogecoin (DOGE) saw a rise of nearly 7%.
The market had been shaken on Monday when BTC briefly dropped to as low as $55,000 after an address linked to the German Federal Criminal Police Office (BKA) sent over $900 million to various addresses.
This sudden movement spooked traders. However, it was later revealed that the BKA received over $200 million back from exchanges such as Kraken, Coinbase, and Bitstamp within the past 12 hours.
Data from Arkham indicates that while the assets were sent to these exchanges, they did not hit the market.
The German government had confiscated a substantial Bitcoin stockpile worth approximately $3 billion from the movie piracy website Movie2k.to.
In January, German police seized 50,000 BTC from the site, marking it as the largest Bitcoin confiscation by law enforcement authorities in Germany to date.
Starting in mid-June, the government had been gradually liquidating over 10,000 BTC, which put downward pressure on the cryptocurrency’s market rate.
Last week, German lawmaker and Bitcoin activist Joana Cotar urged the government to halt its “hasty” Bitcoin selling spree and instead adopt it as a “strategic reserve currency” to protect against risks in the traditional financial system.
Cotar emphasized that Bitcoin could help Germany diversify its treasury assets, safeguard against inflation
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