Bitcoin News Today: 45,000 BTC Still at Large: Could They Sink or Save Bitcoin’s Market?

Arkham Intelligence has identified approximately 45,000 Bitcoin (BTC) valued at roughly $5 billion that remain unseized by the German government in connection with the Movie2K case. The discovery was made through on-chain analysis revealing a cluster of Bitcoin linked to the defunct film piracy website, which has remained inactive since 2019. According to Arkham, these coins are likely still controlled by the Movie2K operators and are spread across over 100 wallets [1].

This development could have significant implications for the Bitcoin market. In mid-2024, the German government sold 50,000 BTC, valued at about $2.8 billion at the time, which has since doubled in value. The decision to sell BTC at a lower price point—$57,000 in 2024—resulted in a missed opportunity for a 100% gain, and the potential re-entry into the market through the seizure of the remaining Movie2K BTC could either introduce bearish or bullish sentiment, depending on whether the assets are sold or held [2].

The German government initially seized 50,000 BTC from the Movie2K case, which were transferred to the state in a voluntary handover in January 2024. The Saxony State Criminal Police Office reported this as Germany’s largest crypto seizure to date [1]. However, the recent analysis by Arkham suggests that another 45,000 BTC—equivalent to roughly half of the initial seizure—remained under the control of the original operators. These funds had been dormant for nearly a decade, raising questions about how authorities might now proceed and whether they intend to track down the remaining wallets.

From a market perspective, the presence of these large Bitcoin holdings could influence supply dynamics and price volatility. If the German government were to seize and liquidate the assets, it could create a supply overhang, potentially weighing on Bitcoin’s price. Alternatively, if the government chooses to hold the BTC—perhaps as part of a broader strategy to build a strategic Bitcoin reserve—it could reinforce bullish sentiment in the market [2].

For traders and investors, the potential movement of these assets underscores the importance of monitoring on-chain activity and wallet behavior. Tools such as Arkham Intelligence provide early signals of large transfers to exchanges, which are often used as indicators of sell pressure. Meanwhile, platforms like Glassnode offer insights into dormant coin activity, which can lead to sharp spikes in trading volumes when long-held coins are moved [2].

The case also highlights the evolving role of Bitcoin in institutional and corporate finance. As more companies consider crypto treasuries—raising capital specifically for the purchase of digital assets—Bitcoin’s integration into traditional financial frameworks continues to expand. While speculative, the Free Democratic Party (FDP) in Germany has proposed the idea of a Strategic Bitcoin Reserve, reflecting broader political and economic interest in the asset class [1].

Source:

[1] Arkham Identifies $5B in BTC Not Seized by the German Government from Movie2K (https://coinpedia.org/news/arkham-identifies-5b-in-btc-not-seized-by-the-german-government-from-movie2k/)

[2] Bitcoin (BTC) Supply Overhang Alert: Author Claims 45,000 Movie2K BTC Unseized as Arkham Tracks German Government Wallets (https://blockchain.news/flashnews/bitcoin-btc-supply-overhang-alert-author-claims-45-000-movie2k-btc-unseized-as-arkham-tracks-german-government-wallets)