In an ongoing effort to liquidate its substantial Bitcoin holdings, the German government has once again engaged in significant transactions involving BTC, according to data from blockchain analytics platforms Arkham Intel. This morning, the Federal Criminal Police Office (BKA) carried out nine transactions involving a total of approximately 2,786 BTC.
The German government is not continuing the Bitcoin sell-off
Arkham Intel’s data shows that four of these were internal transfers, while five transactions were direct transfers to crypto exchanges and market makers, indicating an intent to sell. The five potential sales amount to 1,095,339 BTC worth approximately $67 million. Specifically, the BKA carried out two transfers of 125 BTC, each worth approximately $7.7 million, to well-known crypt exchanges Bitstamp and Kraken.
An additional transaction involved a tiny test transfer of 0.001 BTC to Flow Traders, a leading market maker. This small transaction was quickly followed by a much larger transfer of 345,338 BTC to the same entity, strongly indicating preparation for a substantial sell order.
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Another notable transfer of 500 BTC was forwarded to a mysterious address tagged ‘139Po’. This address has previously had activities linked to the German government, but it remains shrouded in mystery and is believed to be another point of sale.
These trades are part of a broader trend observed since last week. Just a day earlier, on June 25, the government had done so deleted of 400 Bitcoin worth $24 million on Kraken and Coinbase, as well as 500 BTC to tackle “139Po.”
This is on top of significant moves earlier last week: $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 associated with Robinhood. , Bitstamp and Coinbase.
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Currently, the German government’s holdings amount to 45,264 BTC, worth approximately $2.8 billion. This makes Germany one of the largest nation-state 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. facts of Bitcoin Treasuries.
BTC price hovers above critical level
The pattern of large-scale divestments by the German government has contributed to fluctuations in the market price of Bitcoin, which has seen a decline of around 6% since these transactions began. Bitcoin’s value briefly fell below the $60,000 threshold following Mount Gox’s announcement of the payout of approximately $9 billion worth of Bitcoin and Bitcoin Cash starting in July.
Market analysts and investors are also keeping a close eye on these government actions as the sell-off appears to be continuing at a slow pace. This strategic liquidation by the German government comes at a crucial time for market sentiment, with Bitcoin prices teetering just above critical support levels. If the daily trading price were to close below the $60,000 threshold, it could potentially cause a more pronounced decline in Bitcoin’s price, exacerbating market volatility and uncertainty.
At the time of writing, BTC was trading at $61,451.
Featured image created with DALL·E, chart from TradingView.com