Recent data from Arkham Intelligence reveals that the German government is actively reducing its Bitcoin (BTC) holdings by transferring substantial amounts to various cryptocurrency exchanges and wallets. A recent transfer of $24 million worth of Bitcoin highlights the government’s ongoing strategy that may impact Bitcoin’s market dynamics.
Germany’s Bitcoin Liquidation Strategy
On June 25, the Federal Criminal Police Office (BKA) moved 900 BTC across three transactions from a government-labeled cryptocurrency wallet. Two transactions of 200 BTC each were sent to Coinbase and Kraken, while a larger transfer of 500 BTC went to an unidentified address labeled as “139Po.” This move follows a series of transactions involving $130 million BTC on June 19 and $65 million BTC on June 20.
Arkham Intel reported the recent $24 million BTC sale by the German government, with funds going to Kraken, Coinbase, and the address 139Po. These transactions are part of the government’s plan to liquidate Bitcoin acquired from seizing assets of the operator of the pirated movie site Movie2k.
Analysts attribute the recent 11.7% monthly and 6.2% weekly decline in Bitcoin’s price to the ongoing sell-off by the German government. This selling pressure on centralized exchanges (CEXs) is seen as a significant factor influencing Bitcoin’s weak performance, currently trading above $61,000.
The market could face further pressure in July with the defunct crypto exchange Mt. Gox preparing to repay its creditors with over 140,000 BTC worth $9.4 billion. This additional selling pressure may drive prices down further, although some experts like Alex Thorn from Galaxy Digital believe the market may be overestimating the impact of this selling pressure.
As of now, BTC is trading at $61,159.
