German Authorities Continue Bitcoin Transactions
On June 26, the German Federal Criminal Police Office (BKA) transferred 250 BTC, equivalent to $15.4 million, to various exchanges. This transaction is part of a broader trend following the seizure of 50,000 BTC from the film piracy site Movie2k in January, providing further insights into how the German government handles seized Bitcoin.
Breakdown of Recent Transfers
According to on-chain analytics provider Arkham, the German authorities sent 125 BTC, valued at $7.7 million, to both Bitstamp and Kraken. Additionally, they transferred 500 BTC, worth $30.9 million, to an unidentified address labeled “139Po,” which could potentially be another exchange.
These transfers came just a day after German authorities moved 400 BTC, valued at $24.3 million, to Coinbase and Kraken on June 25. Over the past week, the German government has transferred approximately $150 million worth of seized Bitcoin to known exchange addresses, alongside $147 million sent to the “139Po” address. Despite these transactions, the government still retains a substantial 45,609 BTC, valued at around $2.8 billion.
Earlier this month, German authorities received 310 BTC, worth $20.1 million, from Kraken, and smaller amounts totaling 90 BTC, worth $5.5 million, from Robinhood, Bitstamp, and Coinbase.
Market Reactions and Potential Impacts
The Bitcoin market has responded negatively to these significant movements, with the cryptocurrency’s price dropping by about 6% during this period. While there has been no official statement regarding the reason for these transfers, the pattern suggests that the German government might be liquidating a portion of its seized Bitcoin holdings.
Implications for Bitcoin Prices and Market Trends
The crypto community is closely monitoring the potential sell-off pressure that could be triggered by these Bitcoin transfers. Concerns are growing about the possible market impacts, particularly if the government decides to liquidate its substantial holdings of over $2.8 billion worth of BTC rapidly. Such a move could significantly influence the market, potentially pushing Bitcoin’s price below the critical $60,000 psychological threshold.
Recent market trends align with these concerns, as Bitcoin has experienced a downtrend, recording an 11% decrease on the monthly chart and over 6% on the weekly chart. At the time of writing, Bitcoin trades at $61,300 per coin.
Market analyst Willy Woo has suggested that technical chart patterns indicate Bitcoin might undergo a correction lasting up to four weeks before its price rally resumes. Woo emphasized the potential for a “cooling down” period in Bitcoin’s price action.
Additional Selling Pressure from Mt. Gox Creditor Repayments
Further selling pressure is anticipated in July as Mt. Gox plans to distribute repayments in Bitcoin and Bitcoin Cash to its creditors. With over $9.4 billion worth of Bitcoin owed to approximately 127,000 Mt. Gox creditors, who have been waiting for over a decade, this repayment could substantially impact Bitcoin’s price.
As the German government and other significant players in the crypto space make these moves, the market remains vigilant, bracing for potential volatility and price shifts in the coming weeks.
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