Markets
Bitcoin stumbles as Germany liquidates $150 million in seized crypto
The German government recently moved a significant amount of Bitcoin to centralized exchanges, fueling discussions and speculation in the market. According to data from blockchain analytics firm Arkham, the German Federal Criminal Police Office (BKA) moved an additional 250 BTC to exchanges such as Kraken and Coinbase. This Bitcoin is worth approximately $15.4 million. A transfer 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 activities date back to a massive seizure of nearly 50,000 BTC from the illegal movie piracy site Movie2k in January. This seizure was the largest in German history. Over the past week, the government has methodically sent a significant portion of this stash 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 from Kraken. They also obtained a combined 90 BTC from wallets linked to Robinhood, Bitstamp, and Coinbase.
The reason behind these transfers is not explicitly clear, but sending bitcoins to exchanges generally suggests an intention 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, around 46,359 BTC worth around $2.8 billion, are significant. This makes Germany one of the largest bitcoin-holding nation states, after the United States, China and the United Kingdom.
The broader market implications of these moves are remarkable. Bitcoin’s price has been under downward pressure, in part because of these government transfers. On top of that, other factors are exacerbating the selling pressure. Upcoming Mt. Gox Refunds, which will release about $9 billion worth of Bitcoin and Bitcoin Cash to creditors, and large outflows from Bitcoin cash ETFs are also contributing to market jitters. Additionally, selling pressure from major Bitcoin holders, or “whales,” is adding to the volatility.
While the exact reasons for these moves remain speculative, their impact is tangible. As the market adjusts to this influx of supply, investors are closely watching developments, balancing immediate selling pressures with the market’s continued positive outlook over the long term.
By VilleAM
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