The German government, through the Bundeskrimanalamt (BKA), has intensified its liquidation strategy by transferring 6,306 BTC (CRYPTO:BTC), valued at $362 million, to various destinations including Kraken, Cumberland, and an institutional deposit address.

Despite criticism from German parliament member Joana Cotar, the government persists in offloading Bitcoin from its substantial holdings, now reduced to 22,847 BTC worth $1.32 billion.

These transactions have sparked concerns about their impact on Bitcoin's market price, contributing to a recent 16% decline observed by Bitfinex.

However, amid the sell-off, major institutions like VanEck have shown confidence in Bitcoin's long-term potential by purchasing the dip in their investment portfolios.