According to data from Arkham Intel analytics platforms, in a continuing effort to liquidate significant Bitcoin holdings, the German government has once again engaged in significant transactions involving BTC. This morning, the Federal Criminal Police Office (BKA) carried out nine transactions for a total amount of approximately 2,786 BTC.

German government continues to sell off Bitcoins

Arkham Intel data shows that four of these were internal transfers, while five transactions were direct transfers to cryptocurrency exchanges and market makers, suggesting an intent to sell. The five potential sales amount to 1,095,339 BTC worth approximately $67 million. Specifically, BKA made two transfers of 125 BTC, each worth approximately $7.7 million, to prominent cryptocurrency exchanges Bitstamp and Kraken.

The additional transaction consisted of a one-minute test transfer of 0.001 BTC to Flow Traders, a leading market maker. This tiny transaction was soon followed by a much larger transfer of 345,338 BTC to the same entity, which strongly suggests preparation for a significant sell order.

Another notable 500 BTC transfer was directed to an enigmatic address marked “139Po”. This address has previously been linked to the German government, but remains shrouded in mystery and is believed to be another selling point.

These transactions are part of a broader trend observed since last week. Just the day before, on June 25, the government did just that deleted 400 Bitcoins worth $24 million on Kraken and Coinbase, as well as 500 BTC on the address “139Po”.

This is in addition to significant moves that occurred early last week: On June 19, $130 million worth of BTC was transferred to exchanges on June 19 and $65 million on June 20. To offset these outflows, the government received $20.1 million back from Kraken and $5.5 million from wallets linked to Robinhood, Bitstamp and Coinbase.

Currently, the German government’s holdings amount to 45,264 BTC, valued at approximately $2.8 billion. This makes Germany one of the largest holders of Bitcoin, behind only the United States, China and the United Kingdom, which hold 213,246 BTC, 190,000 BTC and 61,000 BTC respectively, according to data from Bitcoin vaults.

BTC price is hanging above critical level

The large-scale sales pattern by the German government has contributed to fluctuations in the market price of Bitcoin, which has fallen by approximately 6% since the transactions began. Bitcoin’s value briefly fell below the $60,000 threshold after Mt.Gox announced a payout of approximately $9 billion worth of Bitcoin and Bitcoin Cash starting in July.

Market analysts and investors are also closely watching the government’s actions as the sell-off appears to be continuing at a sluggish pace. This strategic liquidation by the German government comes at a crucial time for market sentiment, with Bitcoin prices hovering just above critical support levels. If the daily trading price closes below the $60,000 threshold, it could potentially cause Bitcoin’s price to decline more significantly, increasing volatility and uncertainty in the market.

At the time of publication, the BTC price was $61,451.

Featured image created with DALL E, chart from TradingView.com