German Government’s Bitcoin Liquidation Strategy Unfolding
The German government continues to actively liquidate portions of its substantial Bitcoin (BTC) holdings, transferring significant sums to various cryptocurrency exchanges and wallets, according to data from Arkham Intelligence. This wave of transfers includes the recent movement of $24 million worth of Bitcoin, underscoring a broader strategy that may be influencing Bitcoin’s current market dynamics.
Federal Criminal Police Office’s Bitcoin Transactions
On June 25, the Federal Criminal Police Office (BKA), operating a government-labeled cryptocurrency wallet, moved 900 BTC across three separate transactions. Two transactions, each involving 200 BTC, were sent to exchanges Coinbase and Kraken, while a larger transfer of 500 BTC was directed to an address tagged as “139Po.” The ownership and activities of this wallet remain unclear.
- German government moved 900 BTC in total
- 200 BTC each to Coinbase and Kraken
- 500 BTC to address “139Po”
Pattern of Bitcoin Sales by the German Government
These recent transactions form part of a larger pattern of Bitcoin sales by the government. Previous transactions on June 19 and June 20 involved the transfer of $130 million BTC and $65 million BTC, respectively. The transactions from these dates saw some funds returning from Kraken and smaller amounts from wallets associated with Robinhood, Bitstamp, and Coinbase, initially seized from the operator of the pirated movie website Movie2k.
- Previously transferred $130 million BTC on June 19 and $65 million BTC on June 20
- Wallet initially contained nearly 50,000 BTC
- Government currently holds 46,359 BTC
Impact on Bitcoin Market Dynamics
The ongoing sell-off by the German government appears to have contributed to recent price pressures on Bitcoin. The cryptocurrency has witnessed an 11.7% decline over the past month and a 6.2% drop weekly, currently trading slightly above $61,000. Analysts point to the government’s actions on centralized exchanges (CEXs) as a significant factor behind Bitcoin’s weak performance.
- Bitcoin experienced an 11.7% decline over the past month
- Trading above $61,000 despite recent sell-off
- Analysts attribute weak performance to government actions on CEXs
Future Market Outlook Amidst Mt. Gox Repayments
Looking ahead, the market downturn might face further pressures in July as the defunct crypto exchange Mt. Gox plans to start repaying its creditors. With over 140,000 BTC worth $9.4 billion to around 127,000 creditors, additional selling pressure may drive prices down further. However, according to Galaxy Digital’s head of research, Alex Thorn, the market might be vastly overestimating the selling pressure caused by Mt. Gox’s repayments.
- Mt. Gox plans to start repaying creditors in July
- Over 140,000 BTC to be repaid to around 127,000 creditors
- Market could face additional selling pressure
Current Bitcoin Price Update
At the time of writing, BTC is trading at $61,159, indicating a relatively stable price despite the significant government liquidations and market pressures.
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