Bitcoin
Bitcoin Stumbles as Germany Liquidates $150 Million in Seized Cryptocurrencies
The German government recently transferred a substantial amount of Bitcoin to centralized exchanges, fueling market discussions and speculation. According to data from blockchain analytics firm Arkham, Germany’s Federal Criminal Police Office (BKA) transferred another 250 BTC to exchanges such as Kraken and Coinbase. This Bitcoin is worth around $15.4 million. A transfer that follows a series of similar moves last week. In total, around $150 million worth of Bitcoin was sent to various exchange addresses.
German authorities’ Bitcoin activities date back to a massive seizure of nearly 50,000 BTC from illegal film piracy website Movie2k in January. This seizure marked the largest in German history. Last week, the government methodically sent significant portions of this stock to known exchanges. For example, the government transferred 400 BTC to Coinbase and Kraken. They also sent 500 BTC to an unidentified address called “139Po”. Additionally, the government received 310 BTC back from Kraken. They also obtained a combined 90 BTC from wallets linked to Robinhood, Bitstamp, and Coinbase.
The logic behind these transfers is not explicitly clear, but sending Bitcoin to exchanges typically suggests an intent to sell. While the exact reasons remain speculative, such actions often signal the possibility of liquidating the assets for fiat currency or other tokens. While these movements represent only a fraction of daily Bitcoin trading volumes, the German government’s holdings, approximately 46,359 BTC worth around $2.8 billion, are significant. This makes Germany one of the largest holders of Bitcoin by nation-state, after the United States, China, and the United Kingdom.
The broader implications of these market moves are noteworthy. Bitcoin’s price has come under downward pressure, in part due to these government transfers. In addition, other factors are exacerbating the selling pressure. Mt. Gox’s upcoming refunds, that will release about $9 billion worth of Bitcoin and Bitcoin Cash to creditors, and large outflows from spot Bitcoin ETFs are also contributing to market jitters. In addition, selling pressure from major Bitcoin holders, or “whales,” is increasing volatility.
While the exact reasons behind these measures remain speculative, their impact is tangible. As the market adjusts to this influx of supply, investors are watching developments closely, balancing immediate selling pressures against the continued positive long-term market outlook.
By CidadeAM
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