Bitcoin
Bitcoin Stumbles as Germany Liquidates $150 Million in Seized Crypto
The German government recently moved a substantial amount of Bitcoin to centralized exchanges, fueling debate and market speculation. According to data from blockchain analytics firm Arkham, Germany’s Federal Criminal Police Office (BKA) moved another 250 BTC to exchanges like Kraken and Coinbase. This Bitcoin is worth around $15.4 million. The transfer follows a series of similar moves last week. In total, around $150 million worth of Bitcoin was sent to various exchange addresses.
The German authorities’ Bitcoin activities date back to a massive seizure of nearly 50,000 BTC from the illegal movie piracy website Movie2k in January. This seizure marked the largest in German history. Over the past week, the government has been methodically sending significant portions of this stash to well-known exchanges. For example, the government moved 400 BTC to Coinbase and Kraken. They also sent 500 BTC to an unidentified address labeled “139Po.” In addition, 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 motives remain speculative, such actions often signal the possibility of liquidating assets for fiat currency or other tokens. Although 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 Bitcoin holders by nation-state, after the United States, China and the United Kingdom.
The broader implications of these market moves are worth noting. The price of Bitcoin has come under downward pressure, in part due to these government transfers. Additionally, other factors are exacerbating selling pressure. Upcoming Mt. Gox refunds, which will release around $9 billion worth of Bitcoin and Bitcoin Cash to lenders, and large outflows from spot Bitcoin ETFs are also contributing to market jitters. Additionally, selling pressure from major Bitcoin holders, or “whales,” increases 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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