In a notable move, the German Federal Criminal Police Office (BKA) has offloaded 900 Bitcoin (BTC) through a series of transactions, transferring portions to Kraken, Coinbase, and an untagged wallet. This activity, reported by Arkham Intelligence, involves approximately $54 million in BTC and has sparked significant speculation within the cryptocurrency community.
Details of the Bitcoin Transactions
The transfers occurred in the early hours of the European trading day, with 200 BTC directed to Coinbase and another 200 BTC to Kraken. The remaining 500 BTC, worth around $30.4 million, was sent to an unidentified wallet labeled “139Po.” This is not the first interaction between the BKA and wallet “139Po,” which previously received substantial transfers of 800 BTC on June 20 and 500 BTC on June 19.
Potential Market Impact of the Sale
These transactions are part of a broader pattern of activity by the German government, which has moved substantial amounts of Bitcoin in recent weeks. On June 19, $130 million in BTC was sent to various exchanges, followed by an additional $65 million on June 20. The BKA’s actions could introduce significant selling pressure on the market, potentially driving Bitcoin’s price below the critical $60,000 mark.
German Government Transfers: Source Arkham Intelligence June 25
Historical Context and Seizure of Bitcoin
The Bitcoin in question was originally seized from the operators of the film piracy website Movie2k.to and handed over to the BKA in mid-January as part of a ‘voluntary transfer.’ Currently, the German government’s wallet holds over 46,359 BTC, valued at approximately $2.8 billion, making it one of the largest state-owned Bitcoin reserves globally, behind the United States, China, and the UK.
UPDATE: German Government selling additional $24M BTC
In the past 2 hours the German Government has moved 400 BTC to exchange deposits at Kraken and Coinbase.
They have also moved 500 BTC to address 139Po. We have yet to see where these funds are moved. pic.twitter.com/D6QCUv9Jgx
— Arkham (@ArkhamIntel) June 25, 2024
Analyst Predictions and Future Market Trends
Market analysts are closely watching these developments. Willy Woo, a well-known cryptocurrency analyst, suggested that Bitcoin might face a correction lasting up to four weeks before resuming its upward trend. In a recent post, Woo indicated that the market’s current state could lead to a period of “cooling down” before Bitcoin’s price movement becomes more stable.
The recent actions by the German government highlight the significant impact that large-scale transactions by state actors can have on the cryptocurrency market, emphasizing the delicate balance of supply and demand in this volatile space.
