Things to Know About German Govt Transfers of Bitcoin
According to on-chain analytics firm Arkham, Bitcoin addresses linked to German authorities seemed to send an additional 282.74 BTC ($17.6 million) to Coinbase, Bitstamp, and Kraken on Tuesday morning, suggesting a possible plan to sell the assets. Following the confiscation of 50,000 BTC from the movie-piracy website Movie2k in January, addresses with German government labels started transferring bitcoin to cryptocurrency exchanges last month.
- According to Arkham, on July 2, it looked like the German government transferred a further 282.74 BTC ($17.6 million) to Coinbase, Bitstamp, and Kraken.
- Since last month, around $193 million worth of bitcoin has been transmitted to addresses associated with reputable cryptocurrency exchanges by government-labeled addresses.
550 BTC Sent to Another Address, Not to Known Exchanges
At approximately 8:20 a.m. UTC on July 2, the German Federal Criminal Police Office (BKA) transmitted 100 bitcoins ($6.2 million) to Coinbase, 150 bitcoins ($9.4 million) to Bitstamp, and 32.74 bitcoins ($2 million) to Kraken, according to data from a blockchain analytics platform. Furthermore, 550 BTC ($34.3 million) were transmitted simultaneously to the address “139Po,” according to data from Arkham. That address may be associated with an exchange, although the platform has not yet been able to identify it.
- As of now, the German government possesses 43,859 Bitcoin, which are valued at around $2.7 billion, according to Arkham data.
- Germany is one of the biggest nation-state holders of Bitcoin, with 213,246 BTC, 190,000 BTC, and 61,000 BTC held by the US, China, and the UK, in that order, according to Bitcoin Treasuries.
FAQ
Why is the German Government Sending Bitcoin?
The German government may be transferring Bitcoins it holds to exchanges to sell, store, or use for some other purpose. Such transactions are often related to the government’s strategy for managing its digital assets.
How Might These Transfers Affect the Bitcoin Price?
Large transfers of Bitcoin can cause an increase or decrease in liquidity in the market. This can lead to fluctuations in the Bitcoin price, depending on the balance of supply and demand.
What are the Long-term Effects of These Transfers?
The German government’s Bitcoin transfers may cause short-term fluctuations in the market. In the long run, governments’ cryptocurrency strategies and regulations could influence the overall direction and growth of the market.
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