German gov’t transfers another $52M in Bitcoin, threatening more BTC selling pressure

(Coin Telegraph)-03/07/2024

A “German Government (BKA)” labeled cryptocurrency wallet has sold another $52 million worth of Bitcoin, sparking suspicions that the government is selling its vast BTC holdings.

The wallet associated with the German government transferred 832.7 Bitcoin in four individual transactions on July 2.

The wallet sent 100 BTC to Coinbase, 150 BTC to Bitstamp and 32.74 BTC to Kraken, according to Arkham Intelligence data.

The lion’s share, or 550 BTC worth over $32 million, was sent to the wallet “139Po,” which remains unknown but has previously received funds from the German government, including 500 BTC on June 25 and 800 BTC on June 20.

Tracking the selling patterns of large Bitcoin holding entities can give investors valuable cues about the Bitcoin price since large sell orders can create more downward price pressure.

German government could introduce more Bitcoin selling pressure

The BKA-labelled wallet, which holds over 43,850 BTC worth over $2.75 billion, could threaten Bitcoin’s price due to more potential selling pressure.

The Bitcoin price has been in a downtrend since the beginning of June, falling over 7.3% during the past month. BTC found a local bottom above the $58,450 mark on June 24 before bouncing back above the current $62,000 mark, according to Bitstamp data.

Bitcoin has amassed significant support at the $61,500 mark. However, a move below it would liquidate over $1 billion worth of cumulative leveraged long positions across all exchanges, according to Coinglass data.

Is the German government actively selling BTC?

Besides the largest transfer worth $32 million, the rest of the Bitcoin was transferred to centralized exchanges, which signals that Germany’s government is potentially looking to sell its Bitcoin.

Cointelegraph has approached Germany’s Federal Criminal Police Office (BKA) for comment.

The German government-labeled wallet first sparked suspicions of potential Bitcoin selling on June 19, when it executed a 6,500 BTC transfer worth over $425 million.

Before the transfer, the wallet held nearly 50,000 BTC since February 2024. The funds are believed to have been seized from the pirate movie website operator Movie2k.