Markets
Bitcoin stumbles as Germany liquidates $150 million in seized cryptocurrencies
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. That seizure marked the largest seizure in German history. Over the past week, the government has methodically sent significant portions of that stash to known exchanges. For example, the government transferred 400 BTC to Coinbase and Kraken. It also sent 500 BTC to an unidentified address called “139Po.” Additionally, the government received 310 BTC back from Kraken. It 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 usually suggests an intention to sell. While the exact motives remain speculative, such actions often signal the possibility of liquidating the assets for fiat currency or other tokens. While these moves represent only a fraction of bitcoin’s daily trading volumes, the German government’s holdings, approximately 46,359 BTC worth approximately $2.8 billion, are substantial. This makes Germany one of the largest nation-states holding bitcoins, after the United States, China, and the United Kingdom.
The broader market implications of these moves are remarkable. The price of Bitcoin has come under downward pressure, in part due to these government transfers. In addition to this, other factors are exacerbating the selling pressure. Upcoming Mt. Gox Refunds, Investors who have already made deals in Bitcoin and Bitcoin Cash should be able to take advantage of the market volatility, which is expected to free up about $9 billion worth of Bitcoin and Bitcoin Cash to lenders, and massive outflows from spot Bitcoin ETFs are also contributing to the market jitters. Additionally, selling pressure from major Bitcoin holders, or “whales,” is adding to the volatility.
Although the exact reasons for 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 with the market’s continued positive long-term outlook.
By CityAM
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