German Government Moves $17.6 Million in Bitcoin to Major Exchanges Again: What’s Happening?
The German government has continued its divestiture of confiscated Bitcoin, recently transferring another $17.6 million worth of the cryptocurrency to three major exchanges: Coinbase, Bitstamp, and Kraken. This transaction brings the total amount of Bitcoin sent to various exchanges over the past month by the German government to roughly $193 million.
Numbers and Key Players
On July 2nd, 08:20 a.m. UTC, the German Federal Criminal Police Office (BKA) executed the transfer of 100 BTC (valued at $6.2 million) to Coinbase, 150 BTC ($9.4 million) to Bitstamp, and 32.74 BTC ($2 million) to Kraken. These transactions are part of a series of transfers highlighting the German government’s active role in managing and potentially liquidating seized Bitcoin assets.
The backstory to these transfers is quite intriguing. The German authorities began sending Bitcoin to exchanges in January after seizing 50,000 BTC from the Movie2k pirate movie site. This significant haul has led to a series of transactions aimed at managing these assets effectively, crypto analysts opine.
According to Arkham — an on-chain data platform closely monitoring these movements — the recent transfers indicate a potential intention to sell these assets. This speculation is fueled by the fact that the government-labeled addresses have been consistently sending Bitcoin to known crypto exchange addresses.
As per Arkham data, the German government now holds 43,859 BTC, worth approximately $2.7 billion at current market prices.
Speculation and Market Impact
In addition to the transfers on July 2nd, the German authorities also sent 550 BTC (worth $34.3 million) to an address named “139Po,” whose ownership remains undetermined but is speculated to belong to another exchange. This raises questions about the potential impact on the market, given the scale of the transactions.
Earlier, on the preceding Monday, the authorities had transferred 200 BTC ($12.6 million) to Bitstamp, 100 BTC ($6.3 million) to Coinbase, and 100 BTC ($6.3 million) to Kraken, alongside sending 1,100 BTC ($69.4 million) to the “139Po” address. This highlights a significant push by the German government to manage and perhaps liquidate their seized Bitcoin assets.
The authorities also sent 345.34 BTC (valued at $21.2 million) to market maker Flow Traders after a test transaction on June 26. Analysts from Lookonchain speculated that these transactions might signify liquidation through the market maker.
The US Marshals Service has also been auctioning off confiscated Bitcoin in recent months. These sales could contribute to increased volatility in the Bitcoin market in the short term. However, over the long term, the entry of new institutional investors, such as sovereign wealth funds, could have a more positive impact on Bitcoin prices.
Interestingly, on June 27, data from Arkham revealed that the German government appears to have retrieved 475 BTC ($29.2 million) from Kraken, Bitstamp, and Coinbase, posting a series of earlier transfers and acquisitions from various exchanges, including 310 BTC from Kraken on June 20 and additional 90 BTC from wallets associated with Robinhood, Bitstamp, and Coinbase.
These movements have sparked considerable speculation within the crypto community. Some analysts believe that the German government is strategically managing its Bitcoin holdings to minimize market disruption while maximizing the value of the assets. Others speculate that these transfers could be part of a broader strategy to liquidate seized assets in a controlled manner.
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