Bitcoin
German government sells Amother for $67 million in Bitcoin amid market problems
In an ongoing effort to liquidate its substantial Bitcoin holdings, the German government has once again engaged in significant transactions involving BTC, according to data from blockchain analytics platforms Arkham Intel. This morning, the Federal Criminal Police (BKA) executed nine transactions involving a total of around 2,786 BTC.
German government continues Bitcoin liquidation
Arkham Intel data shows that four of these are internal transfers, while five transactions were direct transfers to cryptocurrency exchanges and market makers, suggesting an intent to sell. The five potential sales total 1,095,339 BTC worth approximately $67 million. Specifically, BKA made two transfers of 125 BTC, each worth approximately $7.7 million, to well-known crypto exchanges Bitstamp and Kraken.
An additional transaction involved a thorough test transfer of 0.001 BTC to Flow Traders, a leading market maker. This small transaction was soon followed by a much larger transfer of 345,338 BTC to the same entity, strongly suggesting preparation for a substantial sell order.
Another noteworthy transfer of 500 BTC was directed to a cryptic address marked “139Po”. This address has seen previous activity linked to the German government, but remains shrouded in mystery, with speculation that it is another point of sale.
These transactions are part of a broader trend observed since last week. Just one day earlier, on June 25, the government had discarded of 400 Bitcoins worth $24 million on Kraken and Coinbase, as well as 500 BTC to address “139Po”.
This comes on top of significant moves early last week: $130 million worth of BTC was transferred to exchanges on June 19th and $65 million on June 20th. Counterbalancing these outflows, the government received US$20.1 million back from Kraken and $5.5 million from wallets associated with Robinhood, Bitstamp and Coin base.
Currently, the German government’s holdings total 45,264 BTC, valued at around $2.8 billion. This makes Germany one of the top nation-state holders of Bitcoin, behind only the United States, China and the United Kingdom, which hold 213,246 BTC, 190,000 BTC and 61,000 BTC respectively, according to data of Bitcoin Treasures.
BTC price is above critical level
The pattern of large-scale divestitures by the German government has contributed to fluctuations in the market price of Bitcoin, which has seen a decline of approximately 6% since these transactions began. Bitcoin’s value briefly fell below the $60,000 threshold after the advertisement from Mt. Gox about the disbursement of approximately US$9 billion in Bitcoin and Bitcoin Cash starting in July.
Market analysts and investors are also closely watching these government actions as the sell-off appears to continue at a slow pace. This strategic sell-off by the German government comes at a crucial time for market sentiment, with Bitcoin prices hovering slightly above critical support levels. If the daily trading price closes below the $60,000 threshold, it could trigger a more pronounced decline in the price of Bitcoin, exacerbating market volatility and uncertainty.
At the time of writing, BTC was trading at $61,451.
Featured image created with DALL·E, chart from TradingView.com