Markets
Bitcoin stumbles as Germany liquidates $150 million in seized cryptocurrencies
The German government recently transferred a significant amount of Bitcoin to centralized exchanges, fueling market discussion and speculation. According to data from blockchain analytics firm Arkham, the German Federal Criminal Police Office (BKA) transferred another 250 BTC to exchanges such as Kraken and Coinbase. This Bitcoin is worth approximately $15.4 million. A move that follows a series of similar moves last week. In total, approximately $150 million worth of Bitcoin was sent to various exchange addresses.
German authorities’ Bitcoin activity dates back to a massive seizure of nearly 50,000 BTC from illegal movie piracy site Movie2k in January. This seizure marked the largest in German history. Over the past week, the government has methodically sent significant portions of this stash to popular exchanges. For example, the government transferred 400 BTC to Coinbase and Kraken. They also sent 500 BTC to an unidentified address labeled “139Po.” Additionally, the government received back 310 BTC from Kraken. They also got 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 assets in exchange for fiat currency or other tokens. While these moves represent only a fraction of Bitcoin’s daily trading volumes, the German government’s holdings of approximately 46,359 BTC worth approximately $2.8 billion are significant. This makes Germany one of the largest holders of Bitcoin, after the United States, China and the United Kingdom.
The broader market implications of these movements are noteworthy. The price of Bitcoin has come under downward pressure, in part due to these government transfers. Beyond that, other factors are exacerbating the selling pressure. Mt. Gox’s next refunds, which will release about $9 billion in Bitcoin and Bitcoin Cash to creditors, and large outflows from spot Bitcoin ETFs are also contributing to market jitters. Additionally, selling pressure from major Bitcoin holders, or “whales,” is adding to volatility.
While the exact reasons behind these moves remain speculative, their impact is tangible. As the market adjusts to this influx of supply, investors are watching developments closely, balancing between immediate selling pressure and continued positive long-term market outlook.
By CityAM
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