The German Federal Criminal Police Office has intensified its efforts to divest previously confiscated Bitcoin, recently transferring $17.6 million worth of cryptocurrency to major exchanges. The latest transactions involve Coinbase, Bitstamp, and Kraken, contributing approximately $193 million in Bitcoin sent to various exchanges over the past month.
On July 2nd, precisely at 08:20 a.m. UTC, the BKA executed these strategic transfers. Coinbase received 100 BTC, valued at $6.2 million, while Bitstamp acquired 150 BTC, which was worth $9.4 million. Additionally, Kraken accepted 32.74 BTC, totaling $2 million. These transactions were part of a larger financial operation. These movements are part of ongoing operations stemming from a significant seizure of 50,000 BTC from the Movie2k pirate movie site.
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The German Government transferred 832.7 $BTC($52M) out again 35 minutes ago, of which 282.7 $BTC($17.65M) was transferred to #Bitstamp, #Coinbase and #Kraken.
German Government currently holds 43,859 $BTC($2.74B).https://t.co/uBaH2Wtxev pic.twitter.com/f15sht8Npc
— Lookonchain (@lookonchain) July 2, 2024
German Government’s Strategic Bitcoin Transactions Analyzed
Arkham, an on-chain data monitoring platform, suggests that these Bitcoin transfers could indicate plans to sell digital assets. The strategy appears to be geared towards liquidating these holdings. Regular transfers of Bitcoin to known exchange addresses spark rumors that the government plans to sell these assets. The German government retains possession of 43,859 BTC, which holds a market value of roughly $2.7 billion.
The speculation extends beyond immediate liquidation. Arkham data noted the government’s reacquisition of 475 BTC ($29.2 million) from exchanges like Kraken, Bitstamp, and Coinbase. This included recollecting 310 BTC from Kraken on June 20 and 90 BTC from wallets associated with other major platforms. These reacquisitions highlight a complex strategy possibly aimed at maximizing asset value and minimizing market disruption.
This is in addition to $130M BTC sent to exchanges on 19th June and $65M BTC sent on 20th June, although they received $20.1M back from Kraken and $5.5M from wallets linked to Robinhood, Bitstamp and Coinbase.
Currently, the German Government holds 46,359 BTC, worth $2.8B at…
— Arkham (@ArkhamIntel) June 25, 2024
Germany’s Bitcoin Liquidation Shapes Market
The German government’s actions mirror those of the US Marshals Service, which has also auctioned off confiscated Bitcoin recently. Both entities manage and liquidate seized cryptocurrencies in similar ways. These sales may cause short-term market fluctuations, but they also reflect a growing institutional interest in cryptocurrency markets. This trend suggests a deepening engagement by major players.
The continuous flow of seized Bitcoin into the market is meticulously managed. After Monday’s transfers to Coinbase, Bitstamp, and Kraken, an additional 1,100 BTC worth $69.4 million was sent to an address labeled “139Po.” The affiliation of this address is still unclear.
Moreover, the authorities engaged Flow Traders for potential liquidation after a test transaction of 345.34 BTC ($21.2 million) on June 26, suggesting an organized strategy to effectively integrate these assets into the financial system. As Germany systematically liquidates its Bitcoin holdings, the effect on the cryptocurrency market is drawing widespread attention. This ongoing process is a key point of interest for market observers.
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