The German government continues to unload Bitcoin resources

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According to data from Arkham Intelligence, the German government continues to actively liquidate some of its significant Bitcoin (BTC) holdings, transferring significant sums to various cryptocurrency exchanges and wallets. This wave of transfers includes a recent $24 million Bitcoin move, highlighting a broader strategy that could impact current Bitcoin market dynamics.

The German government is following its Bitcoin eradication strategy

On June 25, the Federal Criminal Police Office (BKA), which operates a government-tagged cryptocurrency wallet, transferred 900 BTC in three separate transactions. Two of these transactions, each involving 200 BTC, were sent to leading exchanges Coinbase and Kraken. Additionally, a larger transfer worth 500 BTC was directed to an address marked “139Po”, a wallet whose activities and ownership remain unclear, despite previous interactions with the German government wallet.

“UPDATE: German government sells additional $24 million worth of BTC. In the last 2 hours, the German government transferred 400 BTC to exchange deposits on Kraken and Coinbase. They also transferred 500 BTC to 139Po. We don’t know yet where these funds will be transferred” – Arkham Intel reported via X

German government donates 900 BTC | Source: Arkham

These transactions are part of a broader pattern of Bitcoin sales by the government, which previously transferred $130 million BTC on June 19 and $65 million BTC on June 20. In transactions on June 19 and 20, some funds were returned from Kraken, and smaller amounts were returned from wallets associated with Robinhood, Bitstamp and Coinbase. Initially, the wallet collected almost 50,000 BTC confiscated from the operator of the pirate movie website Movie2k.

“This is in addition to the $130 million of BTC sent to exchanges on June 19 and the $65 million of BTC sent on June 20, although they received $20.1 million back from Kraken and $5.5 million from wallets associated with Robinhood, Bitstamp and Coinbase . Currently, the German government holds 46,359 BTC worth $2.8 billion at current prices,” Arkham added.

The ongoing sell-off appears to have contributed to recent price pressure on Bitcoin, which has seen a decline of 11.7% over the past month and over 6.2% weekly, currently trading at just above $61,000. Analysts suggest that the German government’s actions on centralized exchanges (CEX) are a noteworthy factor behind BTC’s destitute performance.

Looking ahead, the market downturn could become even more severe in July, as now-defunct cryptocurrency exchange Mt.Gox plans to begin repaying its creditors. With over 140.00 BTC worth $9.4 billion to approximately 127,000 creditors, the market may face additional selling pressure, which could cause prices to decline further. However, as Galaxy Digital head of research Alex Thorn suggests, the selling pressure may be significantly overestimated by the market.

At the time of publication, the BTC price was $61,159.

Bitcoin price
BTC price hovers just above $61,000, 1-day chart | Source: BTCUSD on TradingView.com

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

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