German Authorities Relocate $172 Million Worth of Bitcoin to Various Destinations

A blockchain monitoring entity, PeckShieldAlert, reported on July 4 that a crypto wallet designated as belonging to the German government (BKA) facilitated a major transaction involving the transfer of over 3,000 Bitcoin, valued at approximately $172 million. This transaction involved moving 1,300 Bitcoin, worth about $75 million, to three well-known cryptocurrency exchanges: Coinbase, Kraken, and Bitstamp.

Subsequent reporting uncovered that alongside the transfers to exchanges, another 1,700 BTC was moved to an independent wallet address.

“Total 3K out (from German gov’t labeled wallet), including 1.3K -> CEXs and 1.7K -> (to a wallet address) 139PoPE1bKQam8QJjhVjYDP47f3VH7ybVu.”

Further insights from the on-chain analysis firm Arkham Intelligence indicated that while the first 1,300 BTC went to centralized exchanges, the remaining 1,700 BTC was directed to another distinct crypto wallet.

Impact on Bitcoin Selling Pressure

Over the past fortnight, the German government’s transfers have exceeded 3,000 BTC to various exchanges. These significant movements of Bitcoin, including similar activities by the U.S. government, combined with the impending Mt. Gox repayments, may potentially heighten selling pressures on the cryptocurrency.

Since February 2024, this specific wallet labeled under the German government has managed a portfolio of 50,000 BTC, with a substantial portion being redistributed in recent months.

Globally, governments including Germany frequently seize Bitcoin and other cryptocurrencies tied to illicit activities and occasionally conduct auctions to dispose of these digital assets. For instance, the U.S. government sold a notable amount of Bitcoin, which had been acquired from the notorious Silk Road dark web marketplace. Notably, in 2014, Tim Draper, an American entrepreneur and Bitcoin enthusiast, purchased 29,656 BTC from the Silk Road cache during a U.S. marshals’ auction.

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