The German government has transferred millions in Bitcoin holdings to major Bitcoin and crypto exchanges Kraken and Coinbase, according to blockchain analytics firm Arkham.
Transfers from a fund linked to the German Criminal Police Office (BKA). In 2013, BKA took about 50,000 Bitcoin, from a movie piracy website.
On Tuesday, the BKA fund moved $24 million in Bitcoin in two sales to Kraken and Coinbase. Another $30 million in Bitcoin was sent to an anonymous fund unrelated to the exchange.
Arkham data shows that this transfer follows the previous movement of 195 million dollars of Bitcoin in the exchange on June 19 and 20. Over $425 million was exchanged last week.
Although the German government still holds most of the seized Bitcoin, the transfer to the exchange may indicate an intention to liquidate some of the assets.
Selling government-owned Bitcoin introduces potential downward price pressure. However, the amounts transferred so far represent a small fraction of Bitcoin’s daily trading volume.
However, Bitcoin dipped below $60,000 on Tuesday amid this news. The German government’s Bitcoin fund still holds more than 46,000 Bitcoin worth about $3 billion.
For the German police, Bitcoin seized from illegal activities has increased significantly in value. Selling even a fraction provides an unexpected windfall. However, concerns about potential impacts on the broader Bitcoin market remain.
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