According to CoinPost, on June 26th, the German government transferred 250 bitcoins, worth about $15.4 million, to Kraken and Bitstamp. The government has transferred a total of $150 million worth of BTC to various addresses. The German government’s BTC transfers, along with the Mt.Gox repayment, have put pressure on the price of bitcoin.
The Federal Criminal Police Office (BKA) of Germany has made additional bitcoin transfers to different addresses, including Kraken and Bitstamp.
These actions have sparked significant market speculation and raised concerns about their potential impact on the price of bitcoin.
Recent Bitcoin Transfers by the German Government
On June 26th, it was reported that a wallet controlled by the BKA transferred 750 bitcoins worth $46.35 million to different addresses, marking another example of the German government’s involvement in bitcoin transactions.
These transfers are part of a series of larger activities following the seizure of 50,000 BTC from the movie piracy website Movie2k in January.
According to Lookonchain, the German authorities sent 250 bitcoins worth $15.41 million to Bitstamp and Kraken. Additionally, they transferred 500 bitcoins worth $30.9 million to an unidentified address labeled “139Po,” which could be another exchange.
Just a day before today’s transfer, the German authorities transferred 400 bitcoins worth $24.3 million to Coinbase and Kraken on June 25th.
This activity is part of a broader trend observed in the past week, where the German government has transferred approximately $150 million worth of seized bitcoins to known exchange addresses, with an additional $147 million sent to the “139Po” address.
Despite the significant transfers, the government still holds a substantial amount of funds with 45,609 BTC, valued at around $2.8 billion.
Earlier in June, the German authorities received 310 bitcoins worth $201,000 from Kraken, as well as smaller amounts of 90 bitcoins worth $5.5 million from Robinhood, Bitstamp, and Coinbase.
Potential Impact on the Cryptocurrency Market
The significant fluctuations in the price of bitcoin by the German government have had a notable impact on the market.
It is worth noting that the price of bitcoin has dropped by approximately 6% during this period, reflecting the market’s reaction to these large transfers.
Analysts are concerned that the liquidation of the government’s seized bitcoins could push the price of bitcoin below the critical threshold of $60,000. Recent market trends support this view, as bitcoin has fallen by 11% on the monthly chart and over 6% on the weekly chart. At the time of writing, its price is $61,065 per coin.
Market analyst Willy Woo suggests that bitcoin may go through a four-week consolidation phase before resuming its upward price movement. He emphasizes that there may be a “cooling-off” period in the price trend of bitcoin. Additionally, there may be further selling pressure in July due to Mt.Gox’s plan to distribute repayments of bitcoin and bitcoin cash to creditors.
Approximately 127,000 Mt.Gox creditors have been waiting for over a decade, and they are owed $9.4 billion worth of bitcoin. This repayment could have a significant impact on the price of bitcoin.
The cryptocurrency community is closely monitoring these developments, particularly the bitcoin transfers by the German government and the upcoming Mt.Gox repayments, which could trigger selling pressure.
Both of these events have the potential to have a significant impact on the dynamics of the bitcoin market in the coming months.