Tech
US and German governments move $150 million in cryptocurrency
Recent cryptocurrency transactions by German e United States governments have caught the attention of the cryptocurrency community.
Arkham Intelligence Data shows that Germany moved substantial amounts of Bitcoin (BTC)while the United States moved Ethereum (ETH) from seized funds. On July 1, Germany transferred 1,500 BTC (around $95 million) to various cryptocurrency exchanges.
Concurrently, Arkham Intelligence data also showed that the US has transferred 3,375 ETH (about $11.75 million) to an unidentified address. Additionally, data from the same source also indicates that the German government has transferred 2,700 BTC to multiple exchanges, including Bitstamp, Coinbase, and Kraken, in a two-week period. Germany currently holds 44,692 BTC, worth about $2.82 billion.
The US government, specifically from an address holding funds seized from Estonian crypto entrepreneurs, has made significant transactions. After moving 11.84 BTC (about $743,000) on June 30, the US has transferred its entire $11.75 million worth of ETH to a previously unassociated address.
Analysis and impact on the market
These government transfers suggest strategic management of funds. Germany may be considering liquidating its holdings in major exchanges, while the United States appears to be changing its ETH fund management strategy.
BitsCrunch CEO Vijay Pravin he told Cointelegraph that there has been a notable 6% drop in the price of Bitcoin since these government transactions began. He suggests that this could be the market reacting to potential downside risk:
I think it’s the market waking up to the potential downside risk. There is caution in the air among investors that large-scale divestments by the German and US governments could potentially trigger a more pronounced decline in Bitcoin’s price. If this were to happen, we could see more selling pressure and more volatility.
That of the European Union recently adopted the Regulation on cryptocurrency markets (MiCA) could affect cryptocurrency transfers in Germany. This regulation is expected to have a significant impact on stablecoins and cryptocurrency services, potentially reshaping the European cryptocurrency market.