German Government Moves Another $15 Million in Bitcoin to Bitstamp And Kraken
On June 26, a wallet address reportedly under the control of the German Federal Criminal Police Office (BKA) transferred 250 BTC ($15.4 million) – marking another instance of the German government engaging in Bitcoin transactions.
This move is part of a larger series of transfers following the seizure of 50,000 BTC from the film piracy site Movie2k in January. This recent activity offers further insight into the German government’s handling of the seized Bitcoin.
German Government’s Latest Bitcoin Transfers
According to on-chain analytics provider Arkham, the German authorities sent 125 BTC, worth $7.7 million, to both Bitstamp and Kraken.
Additionally, they transferred 500 BTC, valued at $30.9 million, to an unidentified address labeled “139Po,” which is possibly another exchange.
The German Government transferred 750 $BTC($46.35M) out again, of which 250 $BTC($15.41M) was transferred to #Bitstamp and #Kraken.
German Government currently holds 45,609 $BTC($2.81B).
The German Government also transferred 0.001 $BTC to Flow Traders, which may be a test… pic.twitter.com/F0CFUDPQoP
— Lookonchain (@lookonchain) June 26, 2024
These transfers followed a day after the German authorities moved 400 BTC, valued at $24.3 million, to Coinbase and Kraken on June 25.
This activity is part of a broader trend that started last week. The German government has transferred approximately $150 million worth of seized Bitcoin to known exchange addresses, in addition to $147 million sent to the “139Po” address.
Despite these transfers, the government still holds a substantial amount of 45,609 BTC, valued at approximately $2.8 billion.
Earlier this month, the German authorities received 310 BTC, worth $20.1 million, from Kraken and smaller amounts totaling 90 BTC, worth $5.5 million, from Robinhood, Bitstamp, and Coinbase.
The Bitcoin market has reacted negatively to these large movements, with Bitcoin’s price dropping about 6% during this period.
Although there is no official statement on the reason for these transfers, the pattern suggests that the German government might be liquidating a portion of its seized Bitcoin.
Could German Government Liquidations Bring Bitcoin Below $60K, Along with Anticipated Mt. Gox Creditor Repayment Plans?
The crypto community is closely monitoring the sell-off pressure that might be triggered by the German government’s Bitcoin transfers, with some observers expressing concerns about potential market impacts.
The government’s wallet holds over $2.8 billion worth of BTC. If these coins are sold rapidly, it could significantly impact the market, potentially pushing Bitcoin’s price below the critical $60,000 psychological threshold.
Recent market trends align with this, as Bitcoin has experienced a downtrend, recording an 11% decrease on the monthly chart and over 6% on the weekly chart.
At the time of writing, Bitcoin trades at $61,300 per coin.
Market analyst Willy Woo suggests that technical chart patterns indicate Bitcoin might experience a correction lasting up to four weeks before its price rally resumes.
Woo emphasized the potential for a “cooling down” period in Bitcoin’s price action.
Eyeballing this model… probably 1-4 weeks more of cooling down before #Bitcoin price action is sufficiently boring.
Chart: Intensity of speculators playing casino games. https://t.co/GC0NlFgT6W pic.twitter.com/B3bmD6C5vG
— Willy Woo (@woonomic) June 22, 2024
Additionally, there might be further selling pressure in July as Mt. Gox plans to distribute repayments in Bitcoin and Bitcoin Cash to its creditors.
With over $9.4 billion worth of Bitcoin owed to approximately 127,000 Mt. Gox creditors, who have been waiting for over a decade, this repayment could substantially impact Bitcoin’s price.
