German gov’t offloads 900 Bitcoin, 400 BTC sent to Coinbase and Kraken
(Coin Telegraph)-26/06/2024
A “German Government (BKA)” labeled cryptocurrency wallet has sold over $54 million worth of Bitcoin.
The German government’s wallet sold 900 Bitcoin in three individual transactions on June 25.
The first 200 BTC transaction was sent to the Coinbase exchange, while the second 200 BTC transfer was sent to the Kraken exchange.
However, a third transaction, worth 500 BTC, or over $30 million, was sent to wallet “139Po,” which remains unknown, according to onchain intelligence provider Arkham Intelligence.
While wallet “139Po” remains unknown, it is not the first time the German government has interacted with it. The German government previously sent 800 BTC to the address on June 20 and another 500 BTC on June 19, just six days ago.
Following today’s transfers, the wallet still holds 46,359 Bitcoin, according to Arkham Intelligence.
Will the German government tank Bitcoin below $60,000?
The government-labeled wallet holds over $2.8 billion worth of BTC and could introduce significant selling pressure that could tank Bitcoin’s price below the key $60,000 psychological mark.
Bitcoin price has been in a downtrend, falling 11% on the monthly chart and over 7% on the weekly, trading just above $61,000 as of 9:40 am UTC, according to Bitstamp data.
According to popular analyst Willy Woo, technical chart patterns suggest that Bitcoin might experience a correction lasting up to four weeks before its price rally resumes.
The analyst wrote in a June 22 X post to his over 1.1 million followers:
“Eyeballing this model… probably 1-4 weeks more of cooling down before #Bitcoin price action is sufficiently boring. Chart: Intensity of speculators playing casino games.”
More Bitcoin selling pressure from Germany and Mt. Gox?
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.
Besides the transfer to the untagged wallets, the majority of the Bitcoin is transferred to centralized exchanges, which signals that the government is potentially looking to sell Bitcoin.
Prior to the transfer, the wallet held nearly 50,000 BTC since February 2024. The funds are believed to have been seized from the pirated movie website operator Movie2k.
However, July could introduce more Bitcoin selling pressure since collapsed cryptocurrency exchange Mt. Gox announced that would start repaying its defunct users.
More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors, who have been waiting for over 10 years to recover their funds. This could introduce significant selling pressure for Bitcoin.
