Arkham Intelligence, a renowned analytical platform, has revealed that a Bitcoin wallet labeled as belonging to the “German Government (BKA)” sold over $54.75 million worth of Bitcoin in a series of transactions on June 25. The activity involved the transfer of 900 BTC across three distinct transactions.
The first 200 BTC transfer was directed to the Coinbase exchange, followed by another 200 BTC sent to the Kraken exchange. The most significant transaction involved 500 BTC, valued at over $30 million, being transferred to an unidentified wallet labeled “139Po.”
According to Arkham Intelligence, this particular wallet has previously interacted with the German government’s wallet. On June 20, the government transferred 800 BTC to “139Po,” and another 500 BTC was sent on June 19.
Currently, the government-labeled wallet still holds a substantial 46,359 Bitcoin worth more than $2.8 billion. The potential for these holdings to be sold on the market could exert significant downward pressure on Bitcoin’s price.
The impact of these transactions has already been felt in the market. Bitcoin’s price has recently dropped by 0.35% to $61,161. Over the past 24 hours, the BTC’s value has fluctuated between $61,581 and $60,301.
According to Farside data, this price decline coincides with $174.5 million in outflows from Bitcoin ETFs on June 24. Consequently, Bitcoin’s market dominance has decreased by 0.68% to 53.44%, with its overall market cap falling to $1.21 trillion.
Mt. Gox Set to Commence Bitcoin Repayments in July 2024The German Federal Criminal Police Office (BKA) seized almost 50,000 Bitcoins, worth over $2 billion at the time, from the operators of the film piracy site Movie2k.to, which was active in 2013. The BKA received the Bitcoin in mid-January after the suspects voluntarily handed it over.
The German government-labeled wallet initially aroused suspicion on June 19 when it executed a massive transfer of 6,500 BTC, valued at over $425 million. The trend of transferring Bitcoin to centralized exchanges indicates that the government may be preparing for more sales.
The market could face additional selling pressure in July as the defunct cryptocurrency exchange Mt. Gox begins repaying its users. Mt. Gox owes over $9 billion worth of Bitcoin to approximately 127,000 creditors who have been waiting over a decade for compensation. The release of these funds into the market could further impact Bitcoin’s price stability, adding to the uncertainty already sparked by the German government’s recent move.
