German Government Wallet Transfers 3,000 Bitcoin Worth $172 Million to Exchanges and Wallets

German Government Wallet Transfers 3,000 Bitcoin Worth $172 Million to Exchanges and Wallets

A crypto wallet associated with the German government has transferred over 3,000 Bitcoin, valued at more than $172 million, to several crypto exchanges and a separate wallet.

On July 4, blockchain analysis firm PeckShield reported a substantial outbound transfer of 1,300 Bitcoin from a cryptocurrency wallet labeled “German Government (BKA).” This transfer, worth approximately $75 million, was distributed among three major crypto exchanges: Coinbase, Kraken, and Bitstamp.

Further examination by Cointelegraph uncovered that the German government wallet also transferred an additional 1,700 BTC to a different wallet address at the same time. PeckShield confirmed to Cointelegraph that a total of 3,000 BTC had been moved from the government-labeled wallet: “Total 3K out (from German gov’t labeled wallet), including 1.3K -> CEXs and 1.7K -> (to a wallet address) 139PoPE1bKQam8QJjhVjYDP47f3VH7ybVu.”

While the initial 1,300 BTC were directed to centralized crypto exchanges, the remaining 1,700 BTC were transferred to another crypto wallet, according to data from on-chain analytics platform Arkham Intelligence.

These recent transfers from the German government have increased concerns about potential selling pressure on Bitcoin. Over the past two weeks, the German government has transferred more than 3,000 BTC to multiple exchanges.

In addition to the German government’s actions, ongoing large-scale Bitcoin transfers from the United States government and the impending repayments from Mt. Gox are also contributing to potential selling pressure on the market.

Since February 2024, the wallet labeled by the German government has held 50,000 BTC and has been steadily reducing its holdings over recent months.

Governments worldwide, including Germany, have seized Bitcoin and other digital assets linked to criminal activities and periodically conduct auctions to sell these confiscated holdings.

The U.S. government, for example, has already sold a significant portion of the Bitcoin linked to the notorious dark web marketplace, the Silk Road. In 2014, American businessman and Bitcoin advocate Tim Draper purchased 29,656 BTC from the Silk Road seizure at an auction organized by U.S. marshals.