The German government has transferred another part of its huge Bitcoin holdings to the exchange.
According to blockchain data, the German Federal Criminal Police Office (BKA) moved around $75 million worth of Bitcoin in multiple transactions on July 4. The funds were distributed across all exchanges, including Coinbase, Kraken, and Bitstamp.
This comes after the government converted an estimated $315 million into bitcoins on various platforms since mid-June. Germany uploaded more than $390 million in Bitcoin in less than a month.
In 2013, BKA seized nearly 50,000 bitcoins linked to the former operator of the movie piracy website Movie2K. The stash is estimated at $2.3 billion in today’s prices.
The continued flow of bitcoin on the exchange indicates Germany’s possible plans to liquidate parts of the reserves. This has sparked fears of an impact on Bitcoin’s market value, which has fallen below $58,000 this week.
However, the amounts transferred so far make up a very small part of BKA’s Bitcoin trove. After the latest move, Germany still holds about 40,000 Bitcoin.
The sales mirror has been passed the same by the US government in recent weeks. America also seizes Bitcoin seized from criminal cases, raising concerns that it may sell the caches.
The bankruptcy comes as payments to creditors from the collapse of Mt. Gox in 2014 is expected to start in July. Time threatens to compound selling pressure on Bitcoin.
However, proponents argue that the amounts amount to a small fraction of Bitcoin’s daily trading volume.
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