- The German government transferred 250 bitcoins worth approximately $15.4 million to Kraken and Bitstamp on June 26.
- The government transferred a total of $150 million worth of BTC to various addresses.
- Bitcoin price under pressure due to German government’s BTC transfer and Mt. Gox redemption
The German Federal Criminal Police Office (BKA) further transferred the bitcoins to various addresses, including Kraken and Bitstamp.
This move has generated significant market speculation and concern about the potential impact it could have on the Bitcoin price.
Recent German Government Bitcoin Transfers
On June 26, a wallet purportedly managed by BKA transferred 750 BTC worth $46.35 million to various addresses, another instance of the German government’s involvement in Bitcoin transactions.
These transfers are part of a larger chain of activity that followed the seizure of 50,000 BTC from movie piracy site Movie2k in January.
According to Lookonchain, German authorities sent 250 BTC worth $15.41 million to Bitstamp and Kraken each. They also transferred 500 BTC worth $30.9 million to an unknown address called “139Po,” which is potentially another exchange.
Today’s transfer comes a day after German authorities transferred 400 BTC, worth $24.3 million, to Coinbase and Kraken on June 25.
This activity is part of a broader trend observed last week, with German authorities transferring roughly $150 million worth of seized bitcoin to known exchange addresses, as well as $147 million sent to the “139Po” address.
Despite this significant transfer, the government still holds 45,609 BTC, worth approximately $2.8 billion.
In early June, German authorities received 310 BTC (worth about $20.1 million) from Kraken and 90 BTC (worth about $5.5 million) from Robinhood, Bitstamp, and Coinbase.
Potential impact on cryptocurrency markets
The German government’s massive Bitcoin transaction had a noticeable impact on the market.
In particular, the price of Bitcoin fell by around 6% during this period, reflecting the market reaction to such a sizable transaction.
Analysts are concerned that if the government liquidates the seized Bitcoin, the Bitcoin price could fall below the critical $60,000 threshold. Recent market trends support this view, with Bitcoin down 11% on the monthly chart and over 6% on the weekly chart, and at the time of writing, the price per coin is $61,065.
Market analyst Willie Wu suggests that Bitcoin could go through a correction phase that could last up to four weeks before resuming its price rally. He highlights the possibility of a “cooling-off” period in Bitcoin price action. There could also be additional selling pressure in July as Mt. Gox plans to distribute repayments to creditors in Bitcoin and Bitcoin Cash.
With $9.4 billion worth of bitcoin owed to some 127,000 Mt. Gox creditors who have been waiting for more than a decade, this repayment could have a significant impact on the bitcoin price.
The cryptocurrency community is watching these trends closely, particularly the potential selling pressure from the German government’s Bitcoin transfer and the upcoming Mt. Gox redemption.
Both events could have a significant impact on Bitcoin market trends in the coming months.