TLDR: German Government Selling Bitcoin
The German government has sold 900 Bitcoin worth over $54 million in recent transactions. Transfers were made to Coinbase, Kraken, and an unknown wallet labeled “139Po”. The government still holds over 46,000 Bitcoin worth about $2.8 billion. These sales could potentially put downward pressure on Bitcoin’s price. The Bitcoin was originally seized from the operators of a piracy website called Movie2k.
German Government Selling Bitcoin Seized from Criminals
Recently, the German government has started selling large quantities of Bitcoin that were confiscated from criminals, which could impact the cryptocurrency market significantly. Wallets associated with German authorities have been transferring hundreds of Bitcoin to major exchanges in the past week, possibly to convert them into regular currency.
- German Government Sales of Bitcoin:
- Over 900 Bitcoin worth $54 million have been sold in recent transactions.
- The transfers were made to Coinbase, Kraken, and an unidentified wallet labeled as “139Po”.
- The German government still possesses more than 46,000 Bitcoin valued at approximately $2.8 billion.
- This selling activity might exert downward pressure on the price of Bitcoin.
- The Bitcoin was initially seized from the operators of a piracy website known as Movie2k.
The Selling of Bitcoin by German Authorities
A wallet linked to the German Federal Criminal Police Office (BKA) sent 200 Bitcoin each to Coinbase and Kraken on June 25, amounting to $24 million. Additionally, the same wallet transferred 500 Bitcoin, which was valued at more than $30 million, to an address named “139Po”.
In a previous instance on June 19, the German government moved 1,500 Bitcoin (approximately $97 million) to Kraken, Bitstamp, and Coinbase. The following day, another 200 Bitcoin were sent to Coinbase. In total, about 2,600 Bitcoin (equivalent to $158 million) have been transferred by German authorities in a week.
- Previous Bitcoin Movements:
- On June 19, 1,500 Bitcoin were moved to Kraken, Bitstamp, and Coinbase.
- On June 20, an additional 200 Bitcoin were sent to Coinbase.
- In total, around 2,600 Bitcoin has been moved by German authorities in recent times.
Origin of the Sold Bitcoin
The Bitcoin that is being sold by the German government originates from a substantial seizure conducted by German law enforcement. In January, the BKA received nearly 50,000 Bitcoin from the individuals running Movie2k, an illicit platform sharing pirated movies. At that time, the value of the Bitcoin exceeded $2 billion, marking the largest cryptocurrency confiscation in German history.
Despite the recent sales, the government still maintains a substantial Bitcoin holding. According to Arkham Intelligence, a blockchain analysis company, the BKA-associated wallet contains approximately 46,359 Bitcoin, currently evaluated at around $2.8 billion.
Concerns and Market Impact
The sale of significant volumes of Bitcoin by a governmental entity has sparked concerns within the cryptocurrency community. There is apprehension that a rapid influx of Bitcoin into the market could drive down the digital currency’s price, which has already experienced a 6% decline since the German government initiated transfers to exchanges.
- Market Impact:
- The sale of large amounts of Bitcoin by the German government has raised worries in the cryptocurrency community.
- There are fears that excessive selling could lead to a decline in Bitcoin’s price.
- Bitcoin’s value has dropped by 6% since the German government began transferring funds to exchanges.
Bitcoin Holdings by Governments
Germany is not the sole government with substantial Bitcoin holdings. The United States government is reported to possess the largest stash, holding over 213,000 Bitcoin. Additionally, China and hold significant amounts, with approximately 190,000 and 61,000 Bitcoin, respectively.
This scenario with the German government’s Bitcoin holdings emerges at an intriguing time for the cryptocurrency market, especially with Mt. Gox owing $9.4 billion worth of Bitcoin to individuals who incurred losses when the exchange collapsed in 2014.
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